US government moves $470 million in seized crypto to Coinbase wallets, raising Bitcoin sale questions
The US authorities moved about $470 million in seized crypto to doubtless Coinbase Prime addresses, based on Arkham, reviving questions over potential asset gross sales.
On Oct. 7, blockchain analytics agency Arkham Intelligence said the transfers included Bitcoin, wrapped Bitcoin and USDT.
Arkham linked the transferred property to seizures involving the 2016 Bitfinex hack and Alameda Analysis, the buying and selling agency beforehand managed by FTX founder Sam Bankman-Fried.
Whereas we clearly cannot say the Bitcoin is being offered, it’s one believable consequence. It is most likely simply as doubtless they’re performing inner pockets hygiene or administrative work.
Nonetheless, the vacation spot places the transaction beneath higher scrutiny after the Trump administration pledged to retain Bitcoin positioned within the US Strategic Bitcoin Reserve and federal officers earlier this 12 months rejected claims that seized cash had been quietly offered.
A earlier sale declare led to a authorities denial
The most recent motion lands 9 months after the US Marshals Service pushed again towards studies that Washington had disposed of Bitcoin surrendered within the Samourai Pockets prison case.
Bitcoin Journal reported in January that roughly $6.3 million of Bitcoin paid to the Justice Division as a part of responsible pleas appeared to have been offered. Sen. Cynthia Lummis, one in all Congress’ most distinguished Bitcoin advocates, responded by questioning why the federal government would liquidate the asset after President Donald Trump had directed officers to protect Bitcoin for the nationwide reserve.
However the Marshals Service told DL News it had not offered these BTC, whereas including that its crypto liquidations move via a multi-level approval course of earlier than forfeited property will be disposed of.
The difficulty turned extra delicate after Trump established the Strategic Bitcoin Reserve in March 2025. His executive order mentioned Bitcoin deposited into the reserve “shall not be offered” and will as an alternative be maintained as a US reserve asset.
The White Home argued at the time that untimely authorities Bitcoin gross sales had already value taxpayers greater than $17 billion in foregone worth.
Seized Bitcoin doesn’t routinely imply reserve Bitcoin
The coverage, nonetheless, leaves room for some government-controlled crypto to maneuver out of federal fingers.
Trump’s order permits digital property to be disposed of when required by a court docket or regulation, and when officers decide that property or their proceeds ought to be returned to verified crime victims, used for law-enforcement functions or utilized towards different statutory forfeiture obligations.
That distinction might be significantly vital for these newest transfers.
The federal government seized about 95,000 Bitcoin in 2022 from wallets managed by Ilya Lichtenstein and Heather Morgan as a part of the investigation into the Bitfinex hack. Lichtenstein later admitted to hacking the alternate, the place about 119,754 Bitcoin had been stolen in 2016. Authorities subsequently seized one other roughly $475 million in property tied to the theft.
These property have confronted competing forfeiture and restitution claims, so their authorized therapy might differ from Bitcoin already transferred into the Strategic Bitcoin Reserve.
The FTX collapse additionally led to prison forfeiture proceedings. The decide in Bankman-Fried’s case authorized recovered forfeiture funds to compensate victims, including one other potential victim-repayment dimension to the most recent actions.
That makes Wednesday’s transaction a check of how a lot will be inferred from authorities wallets alone.
A confirmed sale of Bitcoin deposited into the Strategic Bitcoin Reserve, outdoors the order’s exceptions, would reopen questions over whether or not federal companies are following the administration’s accumulation coverage. A switch made for custody, restitution or one other permitted forfeiture goal would fall into a special class.
For now, Arkham studies a whole lot of tens of millions of {dollars} leaving US authorities wallets for doubtless Coinbase Prime deposit addresses. Whether or not these property stay there, transfer into new custody preparations, or are transformed into {dollars} will decide whether or not the transaction turns into one other false alarm over authorities Bitcoin gross sales or the primary signal of a major new disposal.
