- U.S. government-linked wallets transferred ~$288 million in seized crypto, including BTC from Farace and BTC-e cases and ETH from a laundering scheme, to Coinbase Prime.
- Bitcoin routed through fresh intermediary wallets before deposit; ether sent directly, consistent with institutional custody flows.
- Move aligns with Coinbase Prime’s role as custodian for government assets but occurs despite Trump’s March 2025 executive order establishing a Strategic Bitcoin Reserve barring sales.
- Government holdings remain vast at roughly $20.65 billion, making this transfer a small fraction.
The U.S. government has transferred approximately $288 million worth of seized Bitcoin (BTC) and Ether (ETH) to Coinbase Prime, the institutional arm of the major exchange, according to on-chain data tracked by Arkham Intelligence.
The transfers, which occurred over roughly half a day on Monday, involved assets from multiple high-profile criminal seizures. A wallet tied to the Ryan Farace (“xanaxman”) case forwarded 2,875 BTC (roughly $178 million) through a newly created intermediary address directly to a Coinbase Prime deposit wallet. Similarly, a wallet linked to the defunct BTC-e exchange moved 925.512 BTC (about $57 million) using the same routing pattern.
In parallel, a wallet connected to Brian Krewson — an Oracle employee implicated in a $54 million money laundering scheme — sent 30,007 ETH worth approximately $53.09 million directly to Coinbase Prime without intermediaries.
These movements come despite a March 2025 executive order from President Donald Trump directing seized Bitcoin into the nation’s Strategic Bitcoin Reserve and prohibiting its sale. While routing to Coinbase Prime — a platform used for custody, financing, and staging rather than immediate retail trading — does not necessarily signal an impending liquidation, such exchange deposits are often interpreted by market participants as preparation for potential sales or conversions.
Arkham Intelligence data confirms the U.S. government entity maintains substantial holdings, currently valued at around $20.65 billion, including over 324,000 BTC, making the latest batch a minor portion of the overall portfolio.
Market reaction was muted, with Bitcoin holding near $62,600 amid broader macro pressures including renewed Middle East tensions and upcoming U.S. inflation data. Previous similar transfers, such as smaller movements from Samourai Wallet-related seizures, have similarly sparked speculation but often proved to be routine asset management.
Coinbase Prime has served as a key custodian for U.S. government crypto assets in the past. The latest activity underscores the evolving infrastructure for managing forfeited digital assets under the current administration’s pro-crypto stance, even as regulatory clarity bills like the Clarity Act continue to advance in Congress.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
