CoinDesk
U.S. government wallets moved about $288 million in seized bitcoin and ether onto Coinbase Prime on Monday in a pattern blockchain tracker Arkham logged over roughly half a day. The ether went direct from a wallet tied to Brian Krewson, the Oracle employee named in a $54 million laundering scheme, which sent 30,007 ETH worth $53.09 million to a Coinbase Prime deposit address. The bitcoin took a detour through fresh intermediary wallets first.
A wallet tied to Ryan Farace, the so-called "xanaxman" case, sent 2,875 BTC worth roughly $178 million to a new address that forwarded the full balance to a Coinbase Prime deposit wallet minutes later. A second wallet linked to the defunct exchange BTC-e ran 925.512 BTC worth $57 million through the same pattern, in from the seizure address and straight out to Coinbase Prime; both intermediary wallets were then emptied. A separate 140.214 BTC moved between government Coinbase Prime addresses and a Coinbase cold wallet, an on-chain pattern indicative of internal shuffling.
Why it matters
The routing cuts across a March 2025 executive order from President Donald Trump that designated seized bitcoin for the country's Strategic Bitcoin Reserve and said it should not be sold. Coins from the Farace and BTC-e seizures are now sitting on the same venue where Treasury selloffs typically stage. The government still controls roughly $20.65 billion in crypto, including 324,552 BTC, 28,394 ETH and 145.549 million USDT, so Monday's batch is a rounding error against the overall pile. Reading the executive order against the on-chain pattern is where the tension sits.
Market impact
Routings onto exchange venues are widely treated as preparation for a sale or a swap into stablecoins, since large crypto holdings normally sit on cold wallets for security. Coinbase Prime also handles custody, financing and treasury staging, which leaves room for the transfers to be custodial rather than transactional. Watch Treasury's next OFAC disposal notice and any movement from the Strategic Bitcoin Reserve addresses; either would confirm whether Monday's routing was a precursor.
Frequently asked questions
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How much crypto did the US government move to Coinbase Prime?
About $288 million in seized bitcoin and ether landed on Coinbase Prime on Monday, including 2,875 BTC from the Farace case, 925.512 BTC tied to BTC-e, and 30,007 ETH tied to the Krewson laundering case.
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Where did the bitcoin come from before it reached Coinbase Prime?
The bitcoin first moved to freshly created intermediary wallets and then forwarded the full balance to a Coinbase Prime deposit wallet within minutes. The ether traveled direct from a government wallet to the deposit address without an interim hop.
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Does this transfer conflict with the Strategic Bitcoin Reserve order?
The March 2025 Trump executive order directed seized bitcoin into a Strategic Bitcoin Reserve and said it should not be sold. Routing seized BTC and ETH onto an exchange venue cuts against that directive, though Coinbase Prime also handles custody and treasury staging.
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How large is the US government's overall crypto stash?
The wallets still hold roughly $20.65 billion in crypto, including 324,552 BTC, 28,394 ETH and 145.549 million USDT, so Monday's $288M batch is a small fraction of the overall pile.
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What would confirm whether this is a sale in preparation?
A Treasury OFAC disposal notice or any movement from the Strategic Bitcoin Reserve addresses after Monday's routing would clarify whether the transfer was a precursor to selling or simply custodial shuffling.
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