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US government transferred nearly $300 million in seized Bitcoin and Ether to Coinbase Prime, sparking debate over Trump’s strategic reserve order and future
The U.S. government deposited about $297 million worth of seized Bitcoin and Ether into Coinbase Prime on Monday, reviving speculation that the assets could soon be liquidated despite an executive order that bars the sale of seized Bitcoin — a move that signals a possible shift in how federal agencies manage crypto holdings [1].
| At a glance | |
|---|---|
| Asset value transferred | $297 million |
| Bitcoin moved | 3,940 BTC (~$244 million) |
| Ether moved | 30,014 ETH (~$53 million) |
| Linked cases | Ryan Farace (“Xanaxman”), BTC‑e exchange, Brian Krewson |
Arkham Intelligence data shows the on‑chain transaction consisted of 3,940 BTC and 30,014 ETH, valued at $243.95 million and $53.09 million respectively at the time of transfer — the largest single government‑linked crypto move this year [1]. The Bitcoin originated from seizures tied to darknet dealer Ryan Farace and the defunct BTC‑e exchange, while the Ether was linked to former Oracle employee Brian Krewson, who is under investigation for a $54 million crypto‑storage and money‑laundering scheme — all confirmed by Galaxy Research head Alex Thorn [1].
The transfer arrives amid ongoing debate over President Donald Trump’s March 2025 executive order that created a “Strategic Bitcoin Reserve” and explicitly forbids the sale of seized Bitcoin — a policy that would keep the assets as a sovereign reserve. However, moving the coins to Coinbase Prime does not itself confirm a sale; the platform offers custody, trading, financing and staking services, meaning the assets could simply be consolidated for future management [1][3]. Federal wallets still hold roughly $20.6 billion in crypto, including about 325,000 BTC, indicating that the $297 million transfer is a fraction of the overall holdings but notable for its size and the high‑profile cases involved [1][4].
Historically, large government‑linked transfers to institutional custodians have prompted short‑term price volatility, though no immediate liquidation has been observed. The move may prompt investors to monitor on‑chain activity for signs of actual sales, such as large‑scale trades or staking withdrawals. Additionally, the transfer underscores the uncertainty surrounding the administration’s stewardship of the strategic reserve, a factor that could influence broader market sentiment toward U.S. crypto policy.
The significance lies in the tension between the executive order’s sale prohibition and the practical need for agencies to manage and potentially monetize seized assets. How the Treasury and other agencies reconcile these objectives will shape the future trajectory of the U.S. strategic crypto reserve.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 5 outlets · Jul 14, 2026 · How we report
He is departing to work at a startup after leading the legal team through the SEC lawsuit, but will stay on as an adviser.
Approximately 3,940 BTC (about $244 million) and 30,014 ETH (about $53 million) were transferred, totaling roughly $288‑$297 million.
No; the deposits to Coinbase Prime do not confirm a sale, as the platform is used for custody and potential structured liquidation.
An executive order signed in March 2025 that bars the U.S. government from selling seized Bitcoin, while other assets like Ether are placed in a separate Digital Asset Stockpile without the same restriction.
It offers custody, over‑the‑counter trading, and structured liquidation services for large crypto positions.