3,940 Bitcoin seized from convicted drug dealer transferred to US exchange

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The United States has transferred 3,940 Bitcoin seized from convicted drug trafficker Banmeet Singh to to a Coinbase Prime wallet.

The seized 3,940 Bitcoin was part of the largest cryptocurrency seizure ever carried out by the DEA.

According to Arkham Intelligence Banmeet Singh was arrested in London in 2019, and was extradited to the United States in 2023.

From 2012 to 2017, Singh was said to have operated a narcotics network across several U.S. states, including Maryland, New York, and Florida.

Investigations showed that in his January 2024 trial, he was forced to forfeit over 8,100 Bitcoin, then valued at $150 million, to the U.S. government.

Indeed, the transfer to Coinbase has stirred fears of a potential sell-off, potentially impacting Bitcoin’s market value.

This was against the backdrop of similar concerns over the German government’s recent Bitcoin liquidation, amounting to $2.76 billion.

The U.S. government currently holds around 214,000 Bitcoin, valued at approximately $13 billion, making it the largest state holder of Bitcoin according to Arkham Intelligence.

Singh received a five-year prison sentence in April 2024, and was already released with credit for time served and plans to return to India.

Meanwhile, the Bitcoin market remains edgy as large-scale transactions by governments and the Mt. Gox estate could influence price stability in the near future.