US Government Transfers $241M in Seized Bitcoin to Coinbase Prime Wallet

The U.S. government transferred 3,940 seized Bitcoins to a Coinbase prime wallet on Wednesday, as reported by blockchain data firm Arkham Intelligence. These Bitcoins, worth $241 million at the time of transfer, were confiscated from Banmeet Singh, a convicted drug trafficker who pled guilty to money laundering earlier this year.

US Holds Significant Bitcoin Reserves

On-chain analyst Lookonchain highlighted that the U.S. government currently holds 213,546 BTC, valued at approximately $13.07 billion. This data is corroborated by Bitcoin Treasuries, which shows the U.S. as the largest holder of Bitcoin, followed by China and the UK, holding 190,000 BTC and 61,000 BTC respectively.

Global Government Bitcoin Holdings

A total of 11 governments, including Germany and El Salvador, collectively hold 2.7% of the total 21 million Bitcoin supply. Just hours before the U.S. transfer, the German government moved 750 seized Bitcoins, with 250 BTC transferred to Bitstamp and Kraken.

Historical Bitcoin Seizures and Sales

According to Jameson Lopp, co-founder of Casa, the U.S. government has seized and sold at least 195,091 Bitcoins, including assets from the Silk Road auction and various U.S. Marshals announcements.

Case of Banmeet Singh

Banmeet Singh, a dark web vendor, was sentenced to five years in prison on April 19 for selling drugs online. Singh’s operation laundered millions of dollars into cryptocurrency accounts, totaling approximately $150 million. The U.S. Drug Enforcement Agency (DEA) called this the largest cryptocurrency seizure ever.

Market Impact and Community Concerns

Recent government sell-offs have raised concerns within the crypto community about potential Bitcoin price declines. Following the U.S. government’s Bitcoin sale, the price of Bitcoin dropped 1.4% in the last 24 hours, currently trading at $60,656.