According to data from Arkham Intelligence, the United States government transferred approximately $470 million worth of seized cryptocurrencies to addresses believed to belong to Coinbase Prime, sparking renewed speculation about potential asset liquidations.
The blockchain analytics firm reported on Oct. 7 that these transfers involved USDT, wrapped Bitcoin, and standard Bitcoin.
Arkham connected the moved digital assets to federal seizures stemming from Alameda Research—the trading company formerly run by FTX chief Sam Bankman-Fried—and the 2016 Bitfinex hack.
While a sale of the Bitcoin is a plausible outcome, it cannot be stated definitively. It is equally probable that authorities are simply carrying out administrative tasks or performing internal wallet hygiene.
Even so, the chosen destination places the transaction under heightened scrutiny. This follows a pledge by the Trump administration to keep Bitcoin held in the US Strategic Bitcoin Reserve, alongside federal denials earlier this year regarding claims that confiscated coins had been secretly liquidated.
A previous sale claim ended in a government denial
This recent transfer occurs nine months after the US Marshals Service pushed back against media reports suggesting Washington had unloaded Bitcoin surrendered through the Samourai Wallet criminal prosecution.
In January, Bitcoin Magazine reported that roughly $6.3 million in Bitcoin given to the Justice Department via guilty pleas appeared to have been sold. Prominent Bitcoin advocate Sen. Cynthia Lummis publicly questioned why the government would liquidate the asset after President Donald Trump instructed officials to safeguard Bitcoin for the national reserve.
However, the Marshals Service informed DL News that those BTC had not been sold, noting that any crypto liquidations must undergo a multi-level approval workflow before forfeited holdings can be disposed of.
The topic grew more sensitive after the formal establishment of the Strategic Bitcoin Reserve in March 2025. An executive order signed by Trump stated that Bitcoin contributed to the reserve “shall not be sold” and ought to be kept as a US reserve asset instead.
At the time, the White House contended that premature government sales of Bitcoin had already cost taxpayers upwards of $17 billion in lost value.
Seized Bitcoin does not automatically mean reserve Bitcoin
Nevertheless, the policy leaves a window open for certain government-managed digital assets to leave federal custody.
Trump’s directive allows for the disposal of digital assets if mandated by a court or law, or if authorities conclude that the assets or their proceeds should be directed toward law enforcement activities, applied to statutory forfeiture obligations, or returned to verified victims of crime.
This distinction could prove critical regarding these latest asset movements.
In 2022, the government seized about 95,000 Bitcoin from wallets managed by Heather Morgan and Ilya Lichtenstein during the probe into the Bitfinex hack. Lichtenstein subsequently confessed to breaking into the exchange, where an estimated 119,754 Bitcoin were stolen back in 2016. Law enforcement subsequently seized an additional $475 million or so in assets linked to the crime.
Because those funds have encountered competing restitution and forfeiture claims, their legal handling may differ from Bitcoin already transferred directly into the Strategic Bitcoin Reserve.
Similarly, the collapse of FTX triggered criminal forfeiture actions. The presiding judge in Bankman-Fried’s case authorized the use of recovered forfeiture money to reimburse victims, introducing another potential victim-restitution angle to these recent transfers.
Consequently, the transaction on Wednesday serves as a test of how much insight can actually be gleaned strictly from monitoring government wallets.
If Bitcoin deposited into the Strategic Bitcoin Reserve is confirmed to be sold outside the parameters of the executive order’s exceptions, it would spark renewed debate over whether federal agencies are adhering to the administration’s accumulation strategy. Conversely, a transfer executed for custody, victim restitution, or another authorized forfeiture rationale belongs to a separate category entirely.
For the time being, Arkham tracks hundreds of millions of dollars exiting government control and landing in probable Coinbase Prime deposit addresses. Whether these assets stay put, transition into alternative custody setups, or get converted into fiat currency will ultimately reveal whether the transaction is merely another false alarm regarding government Bitcoin sales or the initial indicator of a major new liquidation.
Frequently Asked Questions
How much crypto did the US government recently move?
The US government moved approximately $470 million in seized cryptocurrency, according to blockchain analytics firm Arkham Intelligence.
Where were the seized funds transferred?
The assets were transferred to addresses believed to be Coinbase Prime deposit addresses.
What crimes were linked to the transferred assets?
Arkham linked the transferred funds to seizures associated with the 2016 Bitfinex hack and Alameda Research, the trading firm tied to FTX founder Sam Bankman-Fried.
Are these transferred coins part of the Strategic Bitcoin Reserve?
Not necessarily. Seized assets facing competing restitution or forfeiture claims—such as those from the Bitfinex hack or FTX collapse—may have a different legal treatment compared to funds officially placed inside the Strategic Bitcoin Reserve.
