@daily_btc_lore | Daily Bitcoin History Threads

June 26, 2024 | 2 years ago today

DEA's Biggest Bitcoin Seizure Ever Heads to CoinbaseDEA's Biggest Bitcoin Seizure Ever Heads to Coinbase

On June 26, 2024, the US government transferred 3,940 Bitcoin — roughly $240 million — to Coinbase Prime for sale. Arkham Intelligence spotted the wallet movement on-chain within minutes of it happening. The Bitcoin had been seized from a dark web drug vendor who signed his listings: "I'm still dancing."

Who Was ListonWho Was Liston

Banmeet Singh operated from Haldwani, India under the vendor name "Liston" between 2012 and 2017. His catalog covered fentanyl, LSD, ecstasy, Xanax, ketamine, and tramadol. Hundreds of kilograms, shipped to all 50 US states across four consecutive dark web markets: Silk Road 1, Silk Road 2, AlphaBay, and Hansa.

The NetworkThe Network

Singh's operation wasn't just an India-to-buyer pipeline. He built eight US distribution cells — in Ohio, Florida, New York, North Carolina, Maryland, North Dakota, and Washington — that received bulk international shipments, repacked them into individual orders, and reshipped to buyers. The operation also reached Canada, England, Ireland, Jamaica, and Scotland.

Five Years, Four MarketsFive Years, Four Markets

Singh's operational longevity set him apart. He survived the FBI's seizure of Silk Road in October 2013 and kept selling on Silk Road 2. When Silk Road 2 was shut down in November 2014, he moved to AlphaBay. In July 2017, Operation Bayonet simultaneously shut down both AlphaBay and Hansa in a coordinated international takedown. AlphaBay's founder was arrested in Thailand and died in custody days later. Singh had been on both markets. He lost everything in a single week — and was still indicted the following year. Five years. Four markets. One vendor.

Arrest, Extradition, SentenceArrest, Extradition, Sentence

Singh was indicted in 2018 and arrested in London in April 2019. He fought extradition for four years. By the time he arrived in the US in March 2023, the Bitcoin he had earned through drug sales had appreciated enormously from what it was worth when he earned it. He pleaded guilty in January 2024 and was sentenced to 60 months.

The TransferThe Transfer

The DEA called Singh's $150M forfeiture their largest drug-related Bitcoin seizure ever. The day after a federal judge approved liquidation, the government sent 3,940 BTC to Coinbase Prime. Arkham Intelligence spotted the transfer on-chain within minutes and published it publicly.

What RemainedWhat Remained

After the transfer, the US government still held an estimated 213,546 Bitcoin — roughly $13 billion at the time. Four markets. Three continents. One public blockchain. The ledger hid nothing.

Part of an ongoing series on Bitcoin history. This event falls on June 26, 2024.