On June 26, the US government transferred 3,940 Bitcoin to an exchange, sparking speculation of a potential sell-off, according to data from Arkham Intelligence.

These Bitcoins, originally seized from drug trafficker Banmeet Singh, are currently valued at approximately $240 million.

The funds were moved from the US government’s wallet, which now holds around $13.4 billion in crypto after this latest transfer, to Coinbase Prime, the institutional crypto trading service of Coinbase.

The majority of the US government’s crypto holdings, largely acquired through the seizure of criminal proceeds, consist primarily of Bitcoin. As of June 26, Arkham Intelligence estimates that the US government holds about 213,546 Bitcoin, valued at approximately $12.97 billion.

This amount represents roughly 1% of Bitcoin’s total supply, positioning the US government as one of the largest Bitcoin holders globally.

Earlier instances include a transfer of 1,999 BTC to Coinbase in April and a sale of 9,861 BTC in March for $215 million. CryptoSlate analysis suggests that the US government typically sells portions of its BTC holdings during periods of low asset prices, consistent with previous sales dating back to 2023.

The transfer of these funds follows the conclusion of the US Department of Justice’s case against Banmeet Singh, who was arrested in London in 2019 and extradited to the US in 2023. Singh pleaded guilty to charges of selling controlled substances on the dark web and conspiracy to commit money laundering in January 2024, resulting in a five-year prison sentence in April 2024.

At the time of forfeiture, Singh's crypto holdings were valued at $150 million.

Additionally, India's Directorate of Enforcement arrested Singh in May 2024 at the request of US authorities, seizing 268.22 BTC during a search of Singh's residence, which he shared with his brother, Parvinder Singh. Indian authorities allege that the Singhs acquired at least 8,088 Bitcoin through illicit drug trade activities.