The U.S. government transferred nearly $297 million in seized Bitcoin and Ether to Coinbase Prime on Monday, according to on-chain data, setting off market speculation over whether the assets could be headed for sale.
Blockchain analytics platform Arkham Intelligence said the transfers were made in two steps. The government first moved about $8.8 million in crypto, then sent another $288.33 million around three hours later, bringing the total to almost $297 million.
In a July 13 post, Arkham wrote, "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?"
Assets traced to three criminal cases
The larger transfer, worth more than $280 million, combined confiscated assets tied to three major criminal cases: crypto money launderer Brian Krewson, collapsed exchange BTC-e, and darknet drug trafficker Ryan Farace.
According to the U.S. Department of Justice, Krewson helped two convicted drug dealers store and launder about $54 million in crypto assets. BTC-e operated as an unlicensed cryptocurrency exchange from 2011 to 2017. The Justice Department said the platform processed more than $9 billion in transactions before it was seized by U.S. law enforcement.
Farace accumulated more than 9,138 BTC through darknet drug sales and was sentenced to 54 months in prison in 2023.
Past transfers did not necessarily mean liquidation
The latest move has revived concerns that the U.S. government may be preparing to cash out part of its crypto holdings. But earlier cases suggest that a transfer to Coinbase Prime does not automatically mean an immediate sale.
In January, the government used a similar method to move seized assets, which sparked rumors that it was preparing to sell Bitcoin tied to the Samourai mixer case. It followed with more transfers this year, including Alameda Research-related altcoins in May and seized Chainlink (LINK) tied to FTX in June. Those transactions were not ultimately confirmed as liquidations.
For now, the market is left with questions. Until the U.S. Treasury or the U.S. Marshals Service comments publicly, whether this latest transfer signals an actual sale remains unclear.
Strategic Bitcoin reserve bill remains stalled
Policy uncertainty has added to the scrutiny around the transfer. President Donald Trump signed an executive order in March 2025 to establish a national Bitcoin strategic reserve, with the stated goal of limiting government sales of Bitcoin. Still, an executive order does not carry the force of statute.
Congress introduced a bill in May this year that would formally write the Bitcoin strategic reserve into law and set a 20-year lockup period. The proposal is still in committee and has not moved forward.
Most of the Bitcoin held by the U.S. government comes from criminal asset seizures. The three cases tied to this transfer are among the more prominent ones in recent years. Based on past examples, a move to Coinbase Prime alone is not proof that the assets have entered the market.