U.S. government moves $288 million in seized bitcoin, ether to Coinbase Prime
The U.S. government has transferred $288 million in seized bitcoin and ether to Coinbase Prime. While these movements often precede sales, officials have not confirmed a liquidation, and the transfers represent only a small fraction of the government's total crypto holdings.
Why it matters
The movement of large government-seized assets impacts market sentiment and raises questions about the enforcement of the Strategic Bitcoin Reserve policy.
Wallets tied to the government moved about $288 million in seized bitcoin and ether onto Coinbase Prime over roughly half a day on Monday, blockchain data from Arkham shows. The ether went direct, while the bitcoin took a detour through fresh intermediary wallets first.
The movements are despite an executive order in March 2025 by President Donald Trump, which designated seized bitcoin for the country's Strategic Bitcoin Reserve and said it should not be sold.
A government wallet tied to Ryan Farace, the "xanaxman" case, sent 2,875 BTC worth roughly $178 million to a new address, which forwarded the full 2,875 BTC to a Coinbase Prime deposit wallet minutes later.
A second wallet linked to defunct exchange BTC-e sent 925.512 BTC worth $57 million through the same pattern, in from the seizure address, straight out to Coinbase Prime. Both intermediary wallets were emptied out.
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