The US Just Moved Nearly $300M in Bitcoin and Ether to Coinbase — Is a Sale Coming?

TLDR

• The US government transferred ~3,940 BTC (~$244M) and ~30,014 ETH (~$53M) to Coinbase Prime on Monday
• The Bitcoin was seized from Ryan Farace (“Xanaxman”) and defunct exchange BTC-e; the Ether is linked to an Oracle employee money laundering case
• The move raises questions about Trump’s March 2025 executive order banning the sale of seized Bitcoin
• A deposit to Coinbase Prime does not confirm a sale — the platform also offers custody and asset management services
• Government wallets still hold an estimated $20.5 billion in crypto, including roughly 325,000 BTC

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The US government moved nearly $297 million in seized Bitcoin and Ether to Coinbase Prime on Monday, according to blockchain data tracked by Arkham. The transfer included about 3,940 Bitcoin worth roughly $244 million and around 30,014 Ether valued near $53 million.

The #USgovernment wallets deposited 3,941 $BTC($244M) and 30,007 $ETH($53.09M) into #CoinbasePrime over the past 8 hours.https://t.co/esJntewKzz pic.twitter.com/L5JMP7apgO

— Lookonchain (@lookonchain) July 14, 2026

The Bitcoin was linked to seizures involving Ryan Farace, known online as “Xanaxman,” and the now-defunct crypto exchange BTC-e. Galaxy Research head Alex Thorn confirmed the connection in a public statement.

The Ether came from wallets tied to Brian Krewson, an Oracle employee connected to a federal case involving crypto storage and money laundering worth around $54 million. The transfers brought assets from several enforcement cases onto a single institutional platform.

Does This Mean a Sale Is Coming?

A deposit to Coinbase Prime does not mean the government is selling. The platform offers custody, trading, financing, and staking services. Federal agencies may be consolidating wallets or moving assets into managed custody.

The US Marshals Service chose Coinbase Prime in 2024 to safeguard and trade certain forfeited digital assets. Government wallets have sent funds there several times since. Monday’s transfer ranked among the largest government-linked moves to the platform in 2026.

In June, government-linked wallets sent about $768,000 in crypto tied to FTX and Alameda Research to Coinbase Prime. In April, around 8.2 Bitcoin linked to the 2016 Bitfinex hack was also sent there.

Trump’s Bitcoin Reserve Order

The transfers draw attention because of Trump’s March 2025 executive order. That order created a Strategic Bitcoin Reserve and stated that Bitcoin held in the reserve “shall not be sold.”

The order does allow some exceptions. Agencies can return assets to verified victims, use them for law enforcement, or follow a court order. Ether and other non-Bitcoin assets fall under a separate digital asset stockpile, where the Treasury can set its own stewardship rules.

The reserve structure is still being worked out. Treasury and Commerce departments have been debating who should manage the Bitcoin reserve, with questions around custody, legal authority, and whether new laws are needed.

Government-linked wallets currently hold an estimated $20.5 billion in crypto. Bitcoin makes up the bulk of that, at roughly 325,000 BTC. The wallets also hold Ether, Tether, wrapped Bitcoin, and other seized assets.

On-chain data shows where funds moved, but not what instructions were given to Coinbase Prime. A confirmed sale would require further wallet activity, trading records, or an official government statement. For now, the transfer is being treated as a custody move.