U.S. government transfers $300 million in seized crypto assets to Coinbase
The U.S. government transferred nearly $300 million in seized Bitcoin and Ethereum to the Coinbase Prime platform on Monday. Market participants believe the move may be linked to preparations for a potential sale of the assets.
According to Arkham, 3,940 BTC worth $243.95 million and 30,014 ETH valued at $53.09 million were sent to Coinbase Prime. The cryptocurrencies are connected to several major digital asset seizure cases involving U.S. authorities.
“The transferred coins were seized from Ryan Farace, known by the alias Xanaxman, as well as from the defunct crypto exchange BTC-e,” Galaxy Research head Alex Thorn said, commenting on the Bitcoin transfer.
The transferred ETH is linked to Oracle employee Brian Krewson, who was implicated in a $54 million cryptocurrency storage and money laundering scheme.
Market reaction to the transfer
The transfers attracted market attention because a potential Bitcoin sale could conflict with U.S. President Donald Trump’s March 2025 executive order. Under the order, Bitcoin seized by the U.S. government should be added to the Strategic Bitcoin Reserve and must not be sold.
However, the transfer to Coinbase Prime does not confirm that the assets are being prepared for sale. The platform provides institutional clients with custody, trading, financing and staking services, meaning the transaction may simply be related to asset consolidation.
The U.S. government has previously transferred seized cryptocurrencies to Coinbase Prime, but Monday’s transaction was one of the largest this year involving government-linked wallets.
In June, a government-linked wallet sent 98,589 Chainlink (LINK) tokens seized from FTX and Alameda Research to the platform. In April, around 8.2 BTC connected to the 2016 Bitfinex hack was transferred to Coinbase Prime.
According to Arkham estimates, wallets linked to the U.S. government still hold around $20.6 billion in cryptocurrency. The assets include approximately 325,000 BTC, 28,000 ETH, 146 million USDT and 750 Wrapped Bitcoin (WBTC).
Why the U.S. does not have a Bitcoin reserve
A full-fledged U.S. Bitcoin reserve remains more of a political initiative than an operational government mechanism. Donald Trump first promised to create one during his 2024 presidential campaign. In March 2025, he signed an executive order establishing the Strategic Bitcoin Reserve, but the document essentially only required the government to retain seized BTC and conduct an audit of federal crypto assets.
At the same time, the U.S. has yet to publicly announce any Bitcoin purchases to expand the reserve. The executive order only authorized officials to develop budget-neutral ways of acquiring BTC that would not impose additional costs on taxpayers. As a result, the government’s current holdings consist mainly of assets seized in criminal and civil cases, while Trump’s campaign promise to turn the U.S. into an active Bitcoin buyer remains unfulfilled.
As previously reported, a dispute has emerged within the Trump administration over control of the Strategic Bitcoin Reserve.
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