Data from Arkham Intelligence indicates that 3,940 Bitcoin, seized from convicted drug dealer Banmeet Singh during his January 2024 trial, were sent to a Coinbase Prime wallet by the U.S. government on June 26.
Banmeet Singh’s Case
In 2019, Singh was arrested in London on drug distribution charges and was extradited to the United States in 2023. The U.S. Department of Justice stated that Singh operated a narcotics smuggling network from 2012 to 2017, involving distributors in multiple states, including Maryland, New York, and Ohio.
As part of his sentencing in April 2024, Singh was forced to surrender over 8,100 Bitcoin, valued at approximately $150 million at the time. This seizure was described by the U.S. Drug Enforcement Agency (DEA) as the largest cryptocurrency seizure ever performed by the agency. Singh was sentenced to five years in prison but was given credit for time served and has since been released, planning to return to India.
Market Impact Concerns
The transaction has raised concerns about government sell-offs affecting the Bitcoin market. Recent reports indicated that the German government was selling Bitcoin worth about $2.76 billion, intensifying fears of market impacts. On June 26, another transaction involving 345 Bitcoin was sent to a wallet labeled “Flow Traders.”
The U.S. government holds significant quantities of Bitcoin through seizures and asset forfeitures. According to Arkham, the U.S. government currently owns around 214,000 Bitcoin, valued at approximately $13 billion, making it the largest state holder of Bitcoin in the Arkham database.
Investor anxiety is also heightened by the Mt. Gox bankruptcy estate’s plans to unload 140,000 Bitcoin to reimburse creditors from the 2014 collapse. However, exchange balances are at six-year lows, which could help stabilize Bitcoin prices despite these selling pressures.
