US Government Transfers $770M Worth of Seized Bitcoin to Coinbase Prime
Over the past two days, the US government transferred 9,261 Bitcoin valued at $770 million to Coinbase Prime. These assets stem from seizures connected to previous cybercrime investigations, including the Bitfinex hack and actions against Binance. An additional 2,456 BTC came from new confiscations, highlighting ongoing law enforcement efforts to recover cryptocurrency assets.
Origin and Details of the Transfer
Of the 9,261 Bitcoin transferred, half originated from the Bitfinex hacker group, while another portion relates to known Binance seizure operations. Additionally, 2,456 BTC were sent to the US government's seizure address on Coinbase Prime, which Galaxy Research suggests may represent new law enforcement confiscations. Since 2024, the US Marshals Service has used Coinbase Prime as the custodian to manage seized crypto assets.
Previous transfers from the government-labeled wallet sparked speculation about possible sales, but a sale would contradict US President Donald Trump’s March 2025 executive order. The order mandates that seized Bitcoin not be sold but incorporated into the nation’s Strategic Bitcoin Reserve.
Background and Context
In July, the US government moved $297 million in Bitcoin and Ether to Coinbase Prime, from prior high-profile seizures involving cryptocurrency. The recent asset movements demonstrate continuous law enforcement efforts to recover crypto connected to illicit activities and store it securely under authorized custody.
Cointelegraph reached out to the US Marshals Service and the Department of Justice for comments on these transfers but had not received responses at the time of publication.
Why it matters
This news highlights the ongoing active role of US law enforcement in recovering and safeguarding seized crypto assets through centralized platforms like Coinbase Prime. It also confirms adherence to the presidential order forbidding sales of confiscated Bitcoin, crucial for establishing and maintaining the government’s Strategic Bitcoin Reserve. These developments impact cryptocurrency regulation and illustrate the legal framework for handling confiscated digital currencies in the United States.
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