Uncle Sam On The Move: US Government Transfers Millions In Bitcoin To Coinbase – Coinbase Glb (NASDAQ:COIN)
Wallets believed to be linked to the U.S. government have transferred a significant amount of cryptocurrency—3,940 Bitcoin valued at $241 million—onto Coinbase COIN.
What Happened: This transfer was detected shortly after the same researcher identified that the German government had moved 750 Bitcoin.
Governments often sell or auction off cryptocurrencies acquired through criminal investigations or asset seizures.
A notable example is billionaire Bitcoiner Tim Draper, who bought nearly 30,000 Bitcoin seized from the Silk Road darknet market by the U.S. Marshals Service in 2014.
Arkham Research tracked the U.S. transaction, revealing that the 3,940 Bitcoin were initially seized from Banmeet Singh, an Indian national.
Singh, who pleaded guilty to distributing controlled substances and money laundering in 2024, was ordered to forfeit cryptocurrencies then worth approximately $150 million.
Also Read: U.S. Offers $5M Reward For Information On Crypto Fraudster Ruja Ignatova
Bitcoin Treasuries, a data site, reports that the U.S. government currently holds 213,546 Bitcoin worth over $13 billion at current market prices, ranking it among the largest Bitcoin holders globally.
In comparison, the German government holds 46,359 Bitcoin, making it the fourth-largest sovereign Bitcoin holder after China and Great Britain.
Jameson Lopp, co-founder of Casa and a Bitcoin educator, has documented U.S. government sales of bitcoin, noting that it has seized and sold at least 195,091 Bitcoin, generating over $366 million since 2014.
These known government Bitcoin reserves make up 2.7% of the total 21 million bitcoin supply.
What’s Next: The ongoing developments in government-held bitcoin movements and sales will be a key topic of discussion at Benzinga’s Future of Digital Assets event on Nov. 19, providing insights into how these actions impact the broader cryptocurrency market.
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