The US government transferred 3,940 Bitcoin to Coinbase Prime, Coinbase’s institutional trading platform. This Bitcoin was originally confiscated from Banmeet Singh earlier in 2024 as part of his conviction.
The transfer took place on June 26th, 2024. The Bitcoin was sent to Coinbase Prime, a platform used for institutional trading. Singh was arrested in London in 2019 and extradited to the US in 2023.
As part of his conviction, Singh forfeited over 8,100 Bitcoin to US authorities. The recent transfer of nearly 4,000 Bitcoin likely indicates the government’s intent to liquidate some of its long-held Bitcoin reserves. This move comes amid concerns of potential impacts on the Bitcoin market, similar to recent sell-offs by other national governments.
The transaction was executed via a blockchain transfer and flagged by Arkham Intelligence. It involved moving a significant portion of Bitcoin to an institutional trading platform, which suggests a planned sale.
The US government’s Bitcoin holdings are substantial, with around 214,000 Bitcoin worth over $13 billion. This makes the US the largest national holder of Bitcoin globally. Much of this Bitcoin was seized from various criminal activities, including the Silk Road marketplace and the 2016 Bitfinex hack.
While the transfer of 3,940 Bitcoin is significant, it is minor compared to daily Bitcoin trading volumes. However, it signals the possibility of the US government selling more of its Bitcoin reserves, which could impact market prices. This move comes in the wake of similar actions by the German government, raising concerns about the potential market effects of such large-scale Bitcoin liquidations.
The market is watching closely, as government sell-offs can influence Bitcoin’s price. Despite this, the amount transferred so far is relatively small compared to the overall market, and the US government still holds the vast majority of its Bitcoin.
