US Government Transfers Confiscated Bitcoins Worth IDR 3.8 Trillion To Coinbase

The US government transferred confiscated Bitcoin worth IDR 3.8 trillion to Coinbase (Photo; Doc. Dreamstime)

JAKARTA - On June 26, 2024, the United States government transferred 3,940 bitcoins, worth around IDR 3.8 trillion to Coinbase. This Bitcoin comes from a black market dealer who has been confiscated by the government.

US law enforcement carried out a transfer of 3,940 BTC with a value of IDR 3.8 trillion, coinciding with the sale of BTC similar to that of the German government in the previous few weeks. This movement was tracked by leading onchain analysts, including Zachxbt and Arkham Intelligence team.

Reporting from Bitcoin.com News, according to Arkham's report, the funds were confiscated from a drug dealer named Banmeet Singh and confiscated after a trial in January 2024. Singh was involved in drug trafficking operations on platforms such as Silk Road, Alpha Bay, and Hansa, as stated by the US Department of Justice. Singh pleaded guilty on January 26, 2024 on charges of conspiracy to possess and intend to distribute controlled substances and conspiracy to commit money laundering.

After this transfer, the price of bitcoin decreased by 0.5% against the US dollar, falling below the range of 60,000 US Dollars or around Rp. 984 million per BTC. This movement shows the direct impact of the massive sell-off by government entities on the crypto market.

With the latest sales of 3,940 BTC, the US government still holds as much as 213,546 BTC which is now worth more than IDR 210 trillion. This significant amount places the US government as one of the largest bitcoin holders in the world, after this latest disposition.

Law enforcement and confiscation actions show the government's serious efforts to combat illegal activities in the crypto world. In addition, this step highlights the government's great strength and influence in the digital asset market, which could have a significant impact on the price and stability of bitcoin. However, actions like this can also be seen as an effort to clear the crypto ecosystem from proceeds of crime, placing more confidence in investors that the crypto market is well monitored and well regulated.