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.

 

Featured
image
from
X,
chart
from
Tradingview.com

Go to Source
Author: Godspower Owie

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