The United States government has moved approximately $288 million worth of seized cryptocurrency to Coinbase Prime, the institutional custody platform of the publicly traded exchange, according to blockchain data tracked by multiple analytics firms.
The transfer, flagged by onchain monitors including Galaxy Research, involved roughly 4,376 Bitcoin being sent to Coinbase addresses. While the move stops short of being a direct sale, it has revived questions about the government’s intentions with its substantial crypto holdings and whether it plans to liquidate any portion of them.
U.S. law enforcement agencies, including the Department of Justice and the Internal Revenue Service, routinely seize digital assets linked to criminal activity. The government has historically auctioned off Bitcoin holdings through public sales, though the process has varied across administrations. President Donald Trump previously pledged not to sell seized Bitcoin, but the recent transfer has raised concerns among market participants about whether that position still holds.
The seized assets are believed to be linked to the Silk Road marketplace and other high-profile criminal cases. The U.S. government is one of the largest known Bitcoin holders globally, with holdings periodically adjusted through seizures and sales.
Market reaction to the transfer was muted, with Bitcoin trading near $64,000 at the time of the transaction. Analysts noted that the move to Coinbase Prime does not constitute an immediate sale and could simply reflect routine custody management by the government’s asset forfeiture division.
This is not the first time government Bitcoin movements have drawn attention. In April 2025, a similar transfer of approximately $183 million to Coinbase Prime led to speculation about an impending sale, though no immediate liquidation followed.
This article was adapted from Decrypt. Read the original here.
