On June 26, the US government sent 3,940 bitcoins to Coinbase Prime, Coinbase’s institutional trading platform. Blockchain analytics company Arkham Intelligence Mark the deal.
Just in: 🇺🇸 US government sends 3,940 #Bitcoin Valued at $241 million to Coinbase 👀 pic.twitter.com/m14HpdeJ0s
— Bitcoin Magazine (@BitcoinMagazine) June 26, 2024
The Bitcoin originally transferred from convicted drug dealer Panmeet Singh was seized earlier in 2024. Singh was arrested in London in 2019 on distribution charges and extradited to the US in 2023.
As part of his conviction, Singh confiscated more than 8,100 bitcoins, worth about $150 million at the time, to US authorities.
While the recent transfer of nearly 4,000 bitcoins is significant, it represents only a small fraction of the government’s total bitcoin holdings. Data shows that the US government currently holds around 214,000 bitcoins worth over $13 billion — making it the largest national holder of bitcoin in the world.
A large portion of the government’s bitcoin comes from seizures related to the closed dark web marketplace Silk Road. The infamous Bitfinex hack in 2016 also contributed to the disappearance.
The transfer to Coinbase suggests that the government may be looking to sell some of its long-dormant Bitcoin reserves. This raises concerns about price impacts similar to the recent German government sell-off.
However, the amount transferred so far is relatively small compared to daily Bitcoin trading volumes. The US government still holds the vast majority of the Bitcoin it seized, which is now worth billions of dollars due to the dramatic rise in Bitcoin prices.
