The U.S. government transferred nearly $297 million in seized Bitcoin and Ether to Coinbase Prime on Monday, according to blockchain data from Arkham. The move included about 3,940 BTC worth roughly $244 million and around 30,000 ETH valued near $53 million at the time. The transaction renewed questions about compliance with President Donald Trump's executive order creating a Strategic Bitcoin Reserve, which bans the sale of seized Bitcoin.
Seized assets from criminal cases
Galaxy Research head Alex Thorn linked the Bitcoin to seizures involving Ryan Farace, known online as "Xanaxman," and the closed BTC-e exchange. The Ether came from wallets tied to Brian Krewson, an Oracle employee connected to a federal case involving crypto storage and money laundering. The transfers brought assets from several enforcement cases into an institutional platform used by government agencies and large investors.
Transfer does not confirm a sale
A deposit to Coinbase Prime allows trading, but it does not prove that officials plan to sell the assets. Coinbase Prime provides custody, execution, financing and staking services. Federal agencies may use the platform to consolidate wallets or move assets into managed custody. The U.S. Marshals Service selected Coinbase Prime in 2024 to safeguard and trade certain forfeited digital assets, and government wallets have sent funds there several times since.
Trump reserve order limits Bitcoin sales
Trump's March 2025 executive order created a Strategic Bitcoin Reserve and a separate stockpile for other digital assets. The order says Bitcoin placed in the reserve "shall not be sold" and must remain a U.S. reserve asset, though it allows exceptions for victim restitution, law enforcement work, or court orders. Ether and other non-Bitcoin holdings fall under the separate digital asset stockpile, where the Treasury can set stewardship plans within its legal authority.
Reserve structure remains unsettled
The latest movement comes while federal agencies still debate who should manage the Bitcoin reserve. Treasury and Commerce have discussed control of seized BTC while officials review custody, legal authority and the need for new legislation. Government-linked wallets still hold about $20.5 billion in crypto, including roughly 325,000 BTC, along with Ether, Tether, wrapped Bitcoin and other seized assets. The Monday transfers ranked among the largest government-linked moves to Coinbase Prime in 2026, but on-chain records do not reveal the government's final instructions to the platform. A confirmed sale would require further wallet activity, trading records or an official statement.