- June 28, 2024
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
John E. Deaton, a legal expert and advocate of cryptocurrencies, has harshly criticized the United States government for its recent large-scale Bitcoin transfers to San Fransisco-based crypto exchange Coinbase. Deaton, who is well-known for his frank opinions on regulatory matters in the crypto space, has raised worries about the implications of these transfers, questioning the transparency and motivations behind the government’s actions.
US Government’s Bitcoin Transfers Under Fire
The criticism is the result of the US government transferring a sizable portion of Bitcoin to Coinbase, one of the biggest cryptocurrency exchanges globally. According to reports, thousands of Bitcoins are involved in these transactions, which were connected to assets recovered by law enforcement during several operations against cryptocurrency-related crimes.
Data from Arkham, a blockchain firm revealed that the US government moved over 3,940 BTC valued at $241 million to Coinbase. Originally taken from drug dealer Banmeet Singh, this Bitcoin was forfeited during the trial in January 2024. This remarkable transaction comes in the midst of a global crypto market downturn, which has drawn attention from the general public.
In response to the whale transactions, John E Deaton stated that these are the kinds of actions from the US government that people are sick and tired of deeming the act nonsense. He then called out Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), and US Senator Elizabeth Warren, noting that Gensler continues to work under Warren’s administration, while joining the anti-crypto army she had pledged to create upon her reelection announcement.
Deaton has criticized the US government for utilizing Coinbase for its Bitcoin transfers even though the exchange is accused of engaging in unlawful business activities by the US SEC and Gensler.
He stated:
Gensler, as Chairman of the SECGov has declared Coinbase’s business illegal. Yet, the US Government is using that illegal business to sell Bitcoin to the American public. You can’t make this stuff up.
The legal expert’s critique suggests an inconsistent attitude from the US government, implying that, in spite of the continuing legal battles against Coinbase, using the platform for such transactions is indirectly endorsing them. Furthermore, the action raises serious concerns about the government’s regulatory procedures and implies that it damages the SEC’s reputation.
Coinbase Fights Back At US SEC
John Deaton’s insights coincide with Coinbase’s recent lawsuit against the US SEC and Federal Deposit Insurance Corporation (FDIC) signifying a dramatic intensification of the fight for regulatory clarification within the cryptocurrency space.
Coinbase’s Chief Legal Officer (CLO) Paul Grewal stated that the exchange sued the regulatory watchdog under the Freedom of Information Act (FOIA) for requests made more than a year ago, seeking crucial information to which Coinbase and the general public are entitled to.
The platform is demanding documents from the SEC regarding Ethereum, and whether or not the digital asset is considered a security. Meanwhile, for the FDIC, Coinbase is seeking letters regarding pause notices the corporation claimed they sent to financial institutions concerning crypto-related activities.
