The U.S. government has transferred roughly $288 million worth of Bitcoin and Ethereum to Coinbase Prime, sparking speculation that it may be preparing to sell the seized assets. On-chain data from Arkham Intelligence shows the movement occurred on April 14, involving funds linked to several high-profile criminal cases.
Different routes for Bitcoin and Ethereum
Bitcoin took a roundabout path, while Ethereum was sent directly. Approximately 2,875 BTC (worth about $178 million) from wallets tied to Ryan Farace, known as the "Xanaxman" case, were first moved to a new intermediate address before being forwarded to Coinbase Prime minutes later. Another 925.512 BTC (around $57 million) from the defunct BTC-e exchange followed the same pattern.
In contrast, 37,000 ETH (approximately $53.09 million) from a money-laundering case linked to former Oracle employee Brian Krewson was sent straight to Coinbase Prime without any intermediate steps. A separate internal transfer of 140.214 BTC also occurred between government-owned Coinbase Prime wallets and cold storage, suggesting routine asset rebalancing.
Conflict with Trump's Bitcoin reserve policy
President Trump's March 2025 executive order designated seized Bitcoin as part of a "national strategic Bitcoin reserve" and prohibited its sale. However, Coinbase Prime offers custody, collateral lending, and asset rebalancing services, meaning the transfer does not necessarily signal an imminent sale. Still, market participants often interpret movements to exchange platforms as a step toward liquidation, since long-term holdings are typically kept in cold storage.
Small relative to total holdings, but psychologically significant
The U.S. government currently holds about $20.65 billion in crypto, including 324,552 BTC, 28,394 ETH, and 145.549 million USDT. The moved amount represents a tiny fraction of that total. Nevertheless, the fact that assets have landed on an exchange—potentially conflicting with stated policy—heightens market scrutiny. Traders will watch for further on-chain signals that could indicate whether the government intends to sell or simply reorganize its crypto reserves.