U.S. government transfers seized Bitcoin to Coinbase Prime

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US transfers Bitcoin to Coinbase

Highlights

The U.S. government transferred 9,261 Bitcoin, including funds from Bitfinex hackers and Binance-related seizures, to Coinbase Prime over the past two days.
An additional 2,456 Bitcoin, potentially representing new law enforcement seizures, was moved to the U.S. government’s seizure address on Coinbase Prime.
Transferring seized Bitcoin to Coinbase Prime may create market speculation about sales, despite Trump’s March 2025 executive order mandating retention in the Strategic Bitcoin Reserve.

Seized asset transfers and custody trail

As reported by Cointelegraph, citing Galaxy Research, the Bitcoin moved over the past two days includes funds tied to earlier cryptocurrency exploit recoveries and seizure actions. Of the 9,261 Bitcoin transferred, about half was recovered from the Bitfinex hackers, while another portion came from known Binance-related seizures, according to a Thursday post on X.

Galaxy also said an additional 2,456 Bitcoin came from previously unknown holdings and was sent to the U.S. government’s seizure address on Coinbase Prime. That portion may represent new law enforcement seizures, based on the firm’s reading of the onchain data.

The flows indicate the government is continuing to recover and consolidate crypto assets from earlier cases. Coinbase Prime has served as the custody provider for seized assets handled by the U.S. Marshals Service since 2024.

Reserve policy and market implications

Previous transfers from government-labeled wallets have fueled market speculation about possible sales of seized crypto holdings. Any sale of the transferred Bitcoin, however, would appear to conflict with U.S. President Donald Trump’s March 2025 executive order, which says seized Bitcoin should not be sold and should instead become part of the country’s Strategic Bitcoin Reserve.

Cointelegraph said it has contacted the U.S. Marshals Service and the Department of Justice for comment on the latest transfers. In July, the U.S. government also moved about $297 million in Bitcoin and Ether to Coinbase Prime, using funds that originated from other high-profile federal crypto seizures.

In our earlier coverage of Project Vault, we examined how the U.S. Export-Import Bank’s proposed $12 billion critical-minerals stockpile could tighten already constrained supplies and add volatility to key input prices. We also noted industry calls for clearer operating rules and concerns over compliance waivers tied to restrictions on China-sourced rare earth magnets—highlighting how government reserve-building can ripple through markets and supply chains.

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U.S. government transfers seized Bitcoin to Coinbase Prime

Highlights

Seized asset transfers and custody trail

Reserve policy and market implications

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