US Government Moves Millions in Bitcoin to Coinbase

On June 26th, the US government sent 3,940 Bitcoin to Coinbase Prime, Coinbase’s institutional trading platform. Blockchain analytics firm Arkham Intelligence flagged the transaction.

JUST IN: 🇺🇸 US Government sends 3,940 #Bitcoin worth $241 million to Coinbase 👀 pic.twitter.com/m14HpdeJ0s

— Bitcoin Magazine (@BitcoinMagazine) June 26, 2024

The transferred Bitcoin was originally confiscated from convicted drug trafficker Banmeet Singh 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 forfeited over 8,100 Bitcoin, worth around $150 million at the time, to US authorities. 

While the recent transfer of nearly 4,000 Bitcoin is substantial, it represents just a fraction of the government’s total Bitcoin holdings. Data shows the US government currently possesses around 214,000 Bitcoin worth over $13 billion – making it the largest national holder of Bitcoin globally.

Much of the government’s Bitcoin comes from seizures related to the shuttered dark web marketplace Silk Road. The infamous Bitfinex hack of 2016 also contributed to the stash.

The transfer to Coinbase signals the government may be looking to sell some of its long-dormant Bitcoin reserves. This adds to fears of price impacts similar to the recent German government sell-off.

However, the amount moved so far is relatively minor compared to daily Bitcoin trading volumes. The US government still holds the vast majority of its seized Bitcoin, now worth billions more due to Bitcoin’s meteoric price rise.