U.S. government crypto transfers top $288 million to Coinbase Prime

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US government crypto transfer

Highlights

U.S. government wallets transferred 3,800.5 BTC and 30,007 ETH worth over $288 million to Coinbase Prime, according to Arkham Intelligence.
Some assets originated from Ryan Farace, Brian Krewson, and the defunct BTC-e exchange, highlighting law enforcement seizure links to illicit activity.
A March 2025 executive order directs seized bitcoin into the Strategic Bitcoin Reserve, pausing federal sales and influencing market supply concerns.

Seized asset transfers and custody details

As reported by The Block, citing Arkham Intelligence, wallets linked to the U.S. government move about 3,800.5 BTC and 30,007 ETH across multiple transactions to Coinbase Prime. The transferred assets are worth more than $288 million and come from crypto seizures tied to law enforcement cases.

Arkham labels some of the originating wallets under the names Ryan Farace and Brian Krewson. Farace was convicted of selling counterfeit Xanax pills on dark web marketplaces, while Krewson allegedly helped store and launder $54 million in crypto proceeds connected to narcotics trafficking.

Some of the assets also trace back to the defunct unlicensed exchange BTC-e, which reportedly processed billions in illicit funds before its shutdown in 2017. Coinbase Prime provides custody, trading and related services for institutional clients, making it a common destination for large-scale crypto handling.

Reserve policy and broader market significance

The transfers do not necessarily indicate that a sale is imminent. That remains a key point for crypto markets because a March 2025 executive order from President Donald Trump directs seized bitcoin into the country’s Strategic Bitcoin Reserve and instructs federal agencies to stop selling seized assets.

Arkham says wallets linked to the U.S. government hold a crypto portfolio valued at more than $20 billion, including 324,552 BTC. The holdings also include other digital assets such as USDT, BNB and ZEC, underscoring the scale of federal exposure to the crypto market through asset seizures.

In our earlier article, we covered Senator Elizabeth Warren’s push to add tougher ethics safeguards to upcoming Senate cryptocurrency market structure legislation, aiming to bar top U.S. officials and their families from profiting from the crypto sector. The piece highlighted how scrutiny intensified after disclosures about President Donald Trump’s crypto-related income and family-linked holdings, raising questions about conflicts of interest as lawmakers debate new rules.

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