- US government moved nearly $297M in BTC and ETH to Coinbase Prime, fueling sell-off speculation.
- Transfers included seized crypto from the BTC-e, Brian Krewson, and Ryan Farace cases.
- No sale confirmed as Bitcoin reserve policy and custody procedures remain under review.
The U.S. government transferred nearly $297 million in Bitcoin (BTC) and Ether (ETH) to Coinbase Prime on Monday, drawing attention from crypto markets over whether the assets are being prepared for sale or repositioned as part of custody and forfeiture procedures.
Blockchain intelligence platform Arkham identified two separate transactions completed within hours of each other, involving digital assets linked to multiple criminal cases. The activity also followed another government Bitcoin transfer after a wallet remained inactive for four years, increasing speculation across the market, even though no official confirmation of a sale has been provided.
Two Transfers Combined Nearly $297 Million in Crypto
Arkham first reported that the U.S. government deposited approximately $8.8 million in Bitcoin to Coinbase Prime. The transaction came from a wallet that had remained dormant for about 4 years, prompting immediate discussion over whether it represented the start of a larger disposal of government-held cryptocurrency.
Roughly three hours later, Arkham tracked a second transfer worth approximately $288.33 million. Combined, the two transactions totaled nearly $297 million in Bitcoin and Ether sent to Coinbase Prime.
According to Arkham, the larger transfer included forfeited assets linked to Brian Krewson, the defunct cryptocurrency exchange BTC-e, and Ryan Farace. Additional on-chain data shared by Galaxy Research indicated that the government transferred close to 4,000 Bitcoin to Coinbase Prime during the day, including an additional movement of 2,874.9 BTC valued at about $183.28 million.
Bitcoin Reserve Policy Remains Under Review
The transfers also come as questions remain over how the U.S. government’s Bitcoin reserve will operate. The reserve currently exists through an executive order rather than federal law. The proposed American Reserve Modernization Act, introduced in May, would create the reserve and require seized Bitcoin to be held for 20 years, although the legislation has not been enacted.
Earlier this year, Treasury Secretary Scott Bessent stated that the government would retain seized Bitcoin for the strategic reserve rather than purchase additional holdings directly.
Similar transfers have occurred before. Seized FTX Chainlink tokens were moved to Coinbase Prime in June, while seized Alameda-linked altcoins followed the same path in May. Earlier Coinbase Prime deposits involving forfeited Bitcoin also generated speculation but were not followed by confirmed government sales. As of Monday, federal authorities had not announced whether the latest transfers were intended for liquidation or custody management.
Related: US Government Moves Another $349K in Seized FTX-Alameda Crypto
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