The US government moved 9,261 Bitcoin valued at roughly $770 million to Coinbase Prime over the past two days, according to onchain analysis cited by Galaxy Research. The transfers were traced to cryptocurrency previously seized in enforcement actions tied to earlier exploits.
The breakdown points to multiple sources. About half of the Bitcoin came from funds recovered from the Bitfinex hackers, while another portion was linked to known Binance-related seizures. Galaxy Research also identified 2,456 BTC that came from previously unknown holdings before being sent to a US government seizure address at Coinbase Prime.
Transfers traced to earlier seizure cases
The movement appears to be administrative rather than random, with the Bitcoin tied to assets already under government control. Galaxy Research said the flows connect the latest transfers to prior seizure activity involving major crypto-related cases.
Roughly half of the 9,261 BTC was associated with the Bitfinex hack recovery. Another share came from holdings tied to previously known Binance seizures, indicating the transferred balance was assembled from more than one enforcement source.
Unknown holdings add a new element
A notable part of the transfer involved 2,456 BTC from wallets that had not previously been identified in public tracking of US government holdings. Those coins were then sent to the government’s seizure address on Coinbase Prime.
Because the origin of that tranche was not previously known, the article notes it may represent new federal law enforcement seizures. That point remains tentative, but it introduces the possibility that additional confiscated crypto has entered government custody beyond the better-known cases already tracked onchain.
Coinbase Prime’s role in custody
The latest flows also fit with the government’s existing handling of seized digital assets. Coinbase Prime has served as the custody provider used by the US Marshals Service for seized assets since 2024.
That helps explain why large transfers into Coinbase-linked addresses do not necessarily indicate an immediate market sale. In this case, the destination was a seizure address associated with Coinbase Prime rather than evidence, on its own, of disposal into the open market.
Why the move will be watched closely
Transfers from wallets labeled as belonging to the US government have regularly triggered speculation that officials may be preparing to liquidate Bitcoin holdings. Similar movements in the past have been closely monitored because of the size of the balances involved and their potential market implications.
Any actual sale would also raise questions because it would appear to clash with a March 2025 executive order signed by US President Donald Trump. According to the source article, that order said seized Bitcoin should not be sold and instead should become part of the country’s Strategic Bitcoin Reserve.
For now, the confirmed development is the transfer itself: 9,261 BTC moved into Coinbase Prime-linked government custody, with the known sources split across Bitfinex-related recoveries, Binance-linked seizures, and a smaller block from previously unidentified holdings.
Source: cointelegraph.com