TLDR
- U.S. government wallets sent about $297M in crypto to Coinbase Prime.
- The transfer included 3,940 BTC and 30,014 ETH, Arkham data showed.
- The seized assets were tied to Farace, BTC-e and Brian Krewson cases.
- Coinbase Prime deposits do not confirm a government crypto sale.
- U.S. government-linked wallets still hold over $20B in crypto assets.
The U.S. government moved nearly $300 million in seized Bitcoin and Ether to Coinbase Prime on Monday, Arkham Intelligence data showed, raising fresh questions over whether the transfer was for custody, asset consolidation or a possible future sale.
Arkham Data Shows Large Coinbase Prime Transfer
Arkham Intelligence data showed that government-linked wallets sent about 3,940 Bitcoin and 30,014 Ether to Coinbase Prime. The Bitcoin was worth about $243.95 million, while the Ether was worth about $53.09 million, bringing the total transfer near $297 million.
The assets were linked to several enforcement cases, including funds connected to convicted darknet drug trafficker Ryan Farace, also known as “Xanaxman,” the defunct crypto exchange BTC-e and Brian Krewson. Krewson, a former Oracle employee also known as performer “Mr. Poto,” has faced Justice Department scrutiny over claims tied to crypto storage for convicted cocaine traffickers, but he has not been charged with a crime.
THE US GOVERNMENT JUST DEPOSITED $280M OF CRYPTO TO COINBASE PRIME
The US Government just deposited a total of $288.33M of BTC and ETH to Coinbase Prime. This includes confiscations from Brian Krewson, BTC-e, and Ryan Farace.
Will they be selling it all? pic.twitter.com/M5srRI3KJU
— Arkham (@arkham) July 13, 2026
Galaxy Research head Alex Thorn said the Bitcoin movements were tied to seized coins from Farace and BTC-e. His statement narrowed part of the source of the transfer, though it did not confirm why the government moved the assets to Coinbase Prime.
Coinbase Prime serves institutional clients with custody, trading, financing and staking tools. Because of that, a transfer to the platform does not confirm a sale. The movement could reflect custody management, consolidation of seized assets or preparation for another administrative process.
Sale Speculation Grows, but Transfer Does Not Confirm Disposal
Large government crypto transfers to Coinbase Prime often attract market attention because the platform can support institutional sales. Traders often watch such movements for signs that seized coins may enter the market.
However, the latest transfer alone does not prove the government plans to sell the Bitcoin or Ether. The assets may have been moved for safekeeping, custody management or legal case administration. No public filing or agency statement has confirmed a sale plan tied to Monday’s transaction.
The move also drew attention because President Donald Trump’s March 2025 executive order said seized Bitcoin held by the U.S. government should form part of a Strategic Bitcoin Reserve and should not be sold. A confirmed sale of seized BTC would raise questions about how that policy is being applied.
For now, the transaction remains an on-chain transfer into an institutional platform. The government has used Coinbase Prime before for seized crypto movements, including Chainlink tied to FTX and Alameda Research assets in June and Bitcoin linked to the 2016 Bitfinex hack in April.
U.S. Still Holds More Than $20B in Crypto
Government-linked wallets are estimated to still hold more than $20 billion in crypto assets. Current wallet estimates include around 325,000 Bitcoin, 28,000 Ether, 146 million USDT and 750 Wrapped Bitcoin.
Arkham data lists about 324,551 Bitcoin in U.S. government-labeled wallets, worth more than $20 billion at recent market prices. That makes the U.S. government one of the largest known holders of Bitcoin tied to public wallet labels.
The latest Coinbase Prime deposit was one of the largest government-linked crypto transfers this year. The size of the movement makes it important for market watchers, even though the transfer itself does not show whether the assets will be sold.
