John E. Deaton, a legal expert and cryptocurrency advocate, put it harshly Criticize The US government has criticized its recent massive Bitcoin transfers to San Francisco-based cryptocurrency exchange Coinbase. Deaton, who is known for his outspoken views on regulatory issues in the crypto space, has raised concerns about the implications of the transfers, questioning the transparency and motives behind the government’s actions.
Bitcoin transfers made by the US government are under fire
These criticisms come as a result of the US government transferring a large portion of Bitcoin to Coinbase, one of the largest cryptocurrency trading platforms in the world. According to reports, thousands of bitcoins were involved in these transactions, which were linked to assets recovered by law enforcement agencies during several operations against crimes related to cryptocurrencies.
Data From Arkham, the blockchain company revealed that the US government transferred more than 3,940 BTC worth $241 million to Coinbase. This bitcoin was originally taken from drug dealer Panmeet Singh, and was confiscated during the trial in January 2024. This remarkable deal comes in the midst of a global cryptocurrency market decline, which has caught the attention of the general public.
In response to whale transactions, John E. Deaton He stated that these are the types of actions the US government is taking that people are sick and tired of calling this action nonsense. He then criticized Gary Gensler, Chairman of the US Securities and Exchange Commission (SEC), and US Senator Elizabeth Warren, noting that Gensler continues to work under the Warren administration, while joining the anti-crypto army that she pledged to create when announcing her re-election.
Deaton criticized the US government for using Coinbase in its operations Bitcoin Transfers despite the exchange being accused of engaging in illegal trading activities by the US Securities and Exchange Commission and Gensler.
And he said:
Gensler, as head of SECGov, declared Coinbase’s operations illegal. Yet the US government is using this illegal operation to sell bitcoin to the American public. You can’t make these things up.
The legal expert’s criticism points to an inconsistent position on the part of the US government, meaning that despite ongoing legal battles against CoinbaseUsing the Platform to conduct such transactions constitutes an indirect endorsement thereof. Moreover, this action raises serious concerns about the government’s regulatory actions and implies that it harms the SEC’s reputation.
Coinbase Responds to SEC Criticism
John Deaton’s insights coincide with Coinbase’s recent lawsuit against the US Securities and Exchange Commission and the Federal Deposit Insurance Corporation (FDIC), signaling a significant intensification in the battle for regulatory clarity within the cryptocurrency space.
Paul Grewal, Chief Legal Officer at Coinbase advertiser The exchange filed a lawsuit against the regulatory watchdog under the Freedom of Information Act (FOIA) for requests made more than a year ago, seeking crucial information that Coinbase and the general public are entitled to.
The platform requires documents from Securities and Exchange Commission Regarding Ethereum, whether the digital asset is considered a security or not. Meanwhile, for the FDIC, Coinbase is seeking letters regarding pause notices that the company claimed to have sent to financial institutions regarding cryptocurrency-related activities.
Featured image by X, chart by Tradingview.com