$288M Crypto Transfer: U.S. Sends Seized BTC and ETH to Coinbase Prime Custody

Here’s another fresh rewrite with a sharper market-reporting style:

The U.S. government moved approximately $288 million in seized bitcoin and ether to Coinbase Prime, with bitcoin linked to the Farace and BTC-e seizures passing through newly generated wallets before arriving at the exchange. The transfers have raised questions over how the movements align with President Donald Trump’s previous directive to retain seized bitcoin under the Strategic Bitcoin Reserve rather than sell it.

Blockchain tracking data from Arkham shows that the transfers took place over several hours on Monday. The ether holdings were sent directly to Coinbase Prime, while the bitcoin transactions used intermediary wallets as an additional step before reaching the exchange.

The activity follows Trump’s March 2025 executive order that established the Strategic Bitcoin Reserve and instructed the government to hold confiscated bitcoin as a reserve asset instead of liquidating it.

A wallet connected to the Ryan Farace “xanaxman” case transferred 2,875 BTC, worth roughly $178 million, to a newly created address. That wallet then routed the entire amount to a Coinbase Prime deposit wallet within minutes.

A second government-linked wallet tied to the former BTC-e exchange seizure transferred 925.512 BTC, valued at around $57 million, through a temporary address before sending the funds to Coinbase Prime. Both intermediary wallets were emptied after the transfers were completed.

The ether transaction followed a different pattern. A wallet associated with Brian Krewson’s $54 million Oracle laundering case transferred 30,007 ETH, worth approximately $53.09 million, directly to a Coinbase Prime deposit address.

In a separate transaction, 140.214 BTC moved between government-controlled Coinbase Prime accounts and a Coinbase cold wallet. The movement appears to be an internal custody transfer rather than a new deposit into the trading platform.

While moving seized assets to Coinbase Prime can attract speculation about potential sales, the transfer itself does not confirm liquidation plans. Coinbase Prime also provides institutional custody and settlement services, allowing organizations to manage large digital asset holdings without immediately selling them.

However, exchange-related transfers remain closely watched by markets because they can sometimes signal upcoming trades, conversions, or portfolio adjustments. Government crypto reserves are typically maintained in cold storage, making exchange movements more notable.

Despite the headline size of the transaction, the transferred funds represent only a small portion of the government’s overall crypto holdings. Wallets associated with these reserves still contain about $20.65 billion in assets, including roughly 324,552 BTC, 28,394 ETH, and 145.5 million USDT.