🚀 Crypto Bitcoin Teeters On Edge Of Precipitous Fall As Silk Road BTC Stash Moves To Coinbase

[Undefeated_Lamba]

The feds are moving their Bitcoin stash again.

Blockchain data shows that on Wednesday, a wallet tagged as belonging to the United States Department of Justice moved some $241 million worth of BTC to a Coinbase Prime address.

Arkham Research traced the transaction and found that the Bitcoins were originally seized from a convicted drug trafficker who operated on the now-shuttered Silk Road dark web marketplace.

This transfer by the Feds came just hours after Arkham found evidence that the German government had moved 750 Bitcoins.

BTC Seized From Silk Road Vendor Moves To Coinbase​

Bitcoin dropped towards the $60K level on June 13 after the US government transferred approximately 3,940 Bitcoin (BTC), worth $241 million to Coinbase. Blockchain analytics platform Arkham Intelligence noted that the funds were moved to Coinbase Prime.

The researcher revealed that the BTC stash was seized from Indian national Banmeet Singh, who pleaded guilty in 2024 to distributing narcotics and money laundering offenses. At trial, Singh was ordered to forfeit crypto assets worth roughly $150 million at the time.

Update: US Government Sends $240M BTC to Coinbase Prime

The US Government just moved 3,940 BTC ($240M) to Coinbase Prime.

This BTC was originally seized from narcotics trafficker Banmeet Singh, and forfeited at trial in January 2024.

Transaction: https://t.co/hZ1CwqWCmF pic.twitter.com/9t6k8Wdizq

— Arkham (@ArkhamIntel) June 26, 2024

The U.S. government currently holds 213,246 BTC worth over $13.2 billion— making it one of the largest Bitcoin holders in the world. Meanwhile, the German government is the world’s fourth-biggest sovereign holder of BTC, behind the U.S., China, and the United Kingdom, with 46,359 coins.

What This Could Mean For BTC Price​

When coins are transferred to centralized exchanges, it is usually to sell, as holders look to take advantage of the deeper liquidity these platforms offer. Bitcoin’s bearish momentum, which has been simmering since the start of this week, could be aggravated by these recent large-scale transfers to exchanges.

On Monday, failed crypto exchange Mt. Gox announced it would commence its $9 billion repayment plan in July. Creditors will receive payouts in Bitcoin and Bitcoin Cash, potentially adding to the selling pressure in the market.

Sentiment further soured after German authorities transferred 400 BTC to Coinbase and Kraken on Tuesday, with an additional 500 BTC moved to an untagged address. The German government sent an additional 250 BTC (worth $15.4 million) to Bitstamp and Kraken exchanges earlier today.

Those transfers have garnered the attention of crypto enthusiasts, with speculation rife about the government’s plan for managing and offloading its Bitcoin stash.

The price of Bitcoin dipped on the heels of the latest transfers, hitting a low of $60,676, a -2.1% change on the day.