US Government Transfers 3,940 Bitcoin to Coinbase

The US government has reportedly transferred $240M in Bitcoin to Coinbase Prime, the institutional trading platform.

Arkham Intelligence discovered the transaction and explained the origins of these funds in a post on X.

Mt. Gox and the German government are also predicted to sell a large amount of Bitcoin soon, potentially causing a big correction spanning several weeks.

Arkham on X

Blockchain analytics platform Arkham Intelligence recently announced that the US government moved $240M worth of Bitcoin: “US Government Transfers 3,940 Bitcoin to Coinbase Prime”. Coinbase Prime is a trading platform that was designed for use by institutional investors such as governments.

Arhkam then proceeded to explain the origin of these funds as “originally seized from narcotics trafficker Banmeet Singh, and forfeited at trial in January 2024”.

Banmeet Singh

Banmeet Singh, an Indian dark web distributor, was arrested by British authorities in 2019 and extradited to the US in 2023. He was recently sentenced to 5 years in prison for money laundering and drug distribution but was released quickly due to the time already served since 2019.

In addition to this sentence, he was also ordered to surrender more than 8,000 Bitcoin to the US government. The Drug Enforcement Agency later confirmed that this case was the largest cryptocurrency seizure ever performed in the US.

Looming Sell-Offs

The potential Bitcoin sell-off by the US government is just one of several large-scale liquidations on the horizon. Other major players include the German government and Mt. Gox repayments.

On June 19th, Arkham reported that the German government moved almost 6,500 Bitcoin. Most of it was sent to exchanges, which usually indicates a selling intent.

The Mt. Gox exchange stated earlier this week that it plans to repay its former users starting in July. After waiting for more than 10 years to get their funds back, the majority of these users are likely to cash out, increasing the Bitcoin sell pressure even further.

If these mass sell-off predictions come true, Bitcoin could see a month-long correction.

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