U.S. Transfers $288 Million in Seized Crypto to Coinbase Prime

U.S. Government Shifts $288 Million in Seized Bitcoin and Ether

On Monday, the U.S. government facilitated the transfer of approximately $288 million worth of seized Bitcoin and Ethereum to Coinbase Prime. This significant move involved a two-step process for the Bitcoin, which was routed through new wallets before reaching the exchange, while the Ethereum was sent directly.

Details of the Transfer

According to blockchain data from Arkham, the government’s wallets processed this substantial amount over the course of roughly half a day on Monday. Notably, the transfer of Bitcoin involved 2,875 BTC from a wallet associated with Ryan Farace, stemming from his notorious case. This Bitcoin, valued at around $178 million, was promptly sent to a new address and subsequently transmitted to Coinbase Prime.

A second transfer, involving a wallet connected to the defunct exchange BTC-e, moved 925.512 BTC worth approximately $57 million in a similar pattern.

Ethereum Transactions

In contrast, a wallet linked to Brian Krewson’s case, which involved a $54 million money laundering scheme, sent 30,007 ETH valued at $53.09 million directly to a Coinbase Prime deposit address, skipping intermediary wallets altogether.

Regulatory Context

These movements transpired despite a March 2025 executive order by former President Donald Trump, which designated seized Bitcoin for the country’s Strategic Bitcoin Reserve, expressly stating that such assets should not be sold. This raises questions about the intent behind the transfer.

Implications of the Transfer

While transferring coins to an exchange could imply preparations for transactions, it does not necessarily confirm any sales. Coinbase Prime is also involved in custody and financing services, suggesting that the movement could be part of staging rather than liquidating the assets. The government’s wallets continue to hold a significant value of around $20.65 billion, including 324,552 BTC, 28,394 ETH, and 145.549 million USDT.