Crypto Opinions & News US Government Just Sent $240M in Bitcoin to Coinbase

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https://decrypt.co/237190/us-government-bitcoin-transfer-selloff

The U.S. government appears to be selling more Bitcoin, with a known federal wallet address sending another 3,940 BTC ($240 million) to Coinbase on Wednesday. The move to Coinbase Prime—the exchange’s institutional platform—was immediately picked up by blockchain sleuths, highlighting a blockchain transfer at 1pm ET for just $18 in fees.

Expert opinions were split regarding where the government obtained the transferred Bitcoin. According to on-chain sleuth ZachXBT’s Telegram channel, the funds were part of the reclaimed Bitcoin from the “Silk Road hack.” After the infamous darknet marketplace shutdown in 2013, the Justice Department tracked down the hacker and seized 50,676 BTC, which the government has been selling off in batches ever since.


Aside from Silk Road, many of the government’s coins were reclaimed from 2016 Bitfinex hacker Razzlekhan in 2022. But Blockchain data platform Arkham Intelligence says the coins stolen today came from neither of those sources. “This BTC was originally seized from narcotics trafficker Banmeet Singh, and forfeited at trial in January 2024,” the firm tweeted on Thursday.

US Government Just Sent $240M in Bitcoin to Coinbase—Another Selloff? - Decrypt

The move adds to a growing wave of downward price pressure from miners and other whales.

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Germany Begins Selling Its Bitcoin Billions, Triggering Volatility Fears - Decrypt

The German government is starting to sell off its stockpile of over $3 billion in seized Bitcoin, says Arkham. Will it tank the market?

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The German government is starting to sell its sizable stash of Bitcoin that was seized from the operators of a movie piracy website, sparking concerns about its potential impact on the cryptocurrency market. The government has apparently sold over $195 million in BTC within the past 24 hours.

This significant move follows a recent pattern of large-scale Bitcoin transactions initiated by German authorities, with substantial amounts being funneled to major exchanges such as Coinbase, Kraken, and Bitstamp. That could suggest even more selling to come.