U.S. Government Moves $241 Million in Seized Bitcoin to Coinbase

U.S. government transfers 3,940 bitcoins (worth $241 million) to Coinbase, originating from assets seized in a 2024 criminal case involving money laundering and drug distribution.

Key Insights

  • U.S. government transfers 3,940 bitcoins to Coinbase, originating from assets seized in a 2024 criminal case involving money laundering and drug distribution.
  • The U.S. government currently holds 213,546 bitcoins valued at over $13 billion.
  • Known government bitcoin stockpiles account for 2.7% of the total bitcoin supply

NEW YORK (MarketsXplora) – The U.S. government has moved a significant amount of cryptocurrency onto major exchange Coinbase, according to blockchain analytics firm Lookonchain, in a transaction that highlights the growing intersection of government seizures and the digital asset market.

The transfer, involving 3,940 bitcoins worth approximately $241 million at current market rates, was detected by on-chain researchers just hours after similar movement was observed from German government-associated wallets.

A source familiar with the matter, speaking on condition of anonymity, confirmed to Reuters that Coinbase controls the receiving address of the U.S. transaction.

Arkham Research, a blockchain data provider, traced the origin of the transferred bitcoins to assets seized from Indian national Banmeet Singh. In 2024, Singh pleaded guilty to distributing controlled substances and money laundering offenses, resulting in the forfeiture of cryptocurrencies valued at about $150 million at the time.

Government sales of seized cryptocurrencies are not uncommon. Notable past instances include billionaire Tim Draper’s purchase of nearly 30,000 bitcoins from the U.S. Marshals Service in 2014, originally seized from the Silk Road darknet market.

U.S. government is one of the world’s largest bitcoin holders

According to Bitcoin Treasuries, a data aggregation site, the U.S. government currently holds 213,546 bitcoins, valued at over $13 billion at current market prices. This makes it one of the world’s largest bitcoin holders. Germany ranks as the fourth-largest sovereign holder globally, possessing 46,359 bitcoins.

Jameson Lopp, co-founder of Casa and a prominent Bitcoin educator, has tracked U.S. government sales of bitcoin since 2014. His research indicates that the government has seized and sold at least 195,091 bitcoins, generating over $366 million in revenue.

The combined known government bitcoin stockpiles account for approximately 2.7% of the total 21 million bitcoin supply, highlighting the growing role of sovereign entities in the cryptocurrency ecosystem.

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