US Government Moves $470 Million in Seized Crypto to Coinbase, Sparking Sale Questions
Thousands of Bitcoin shift to Coinbase addresses
The US government moved about $470 million in seized crypto to what blockchain analytics firm Arkham identified as likely Coinbase Prime wallets on October 7. The transfer included Bitcoin, wrapped Bitcoin (BTC backed by actual Bitcoin held in reserve), and USDT (a stablecoin pegged to the US dollar).
Arkham linked the assets to seizures connected to the 2016 Bitfinex hack and Alameda Research, the trading firm formerly controlled by FTX founder Sam Bankman-Fried.
What the movement could mean
A sale is one possibility, but not the only one. Arkham noted that the transfers could also reflect routine internal wallet management or administrative reorganization. A confirmed move to Coinbase does not by itself prove the government intends to sell the assets.
Reserve policy adds scrutiny
The transfer comes amid questions about how Washington handles seized crypto under President Donald Trump's Strategic Bitcoin Reserve, established by executive order in March 2025. That order stated Bitcoin placed in the reserve "shall not be sold" and should be held as a national reserve asset. The White House argued at the time that earlier government sales had cost taxpayers more than $17 billion in lost value.
However, the order does allow digital assets to be disposed of when required by a court or law, including when assets or proceeds are returned to verified crime victims, used for law-enforcement purposes, or applied toward statutory forfeiture obligations.
A prior dispute over seized Bitcoin
Nine months earlier, in January 2026, Bitcoin Magazine reported that roughly $6.3 million in Bitcoin from the Samourai Wallet criminal case appeared to have been sold. Senator Cynthia Lummis, a prominent Bitcoin advocate, questioned why the government would liquidate the assets after Trump directed officials to preserve Bitcoin for the national reserve.
The US Marshals Service denied selling the Bitcoin, telling DL News that its crypto liquidations pass through a multi-level approval process before forfeited assets can be disposed of.
Separate legal paths for seized assets
The government seized about 95,000 Bitcoin in 2022 from wallets controlled by Ilya Lichtenstein and Heather Morgan as part of the Bitfinex hack investigation. Lichtenstein later admitted to hacking the exchange, where about 119,754 Bitcoin were stolen in 2016. Authorities subsequently seized another roughly $475 million in assets tied to the theft.
Those assets face competing forfeiture and restitution claims, which could distinguish their legal treatment from Bitcoin already transferred into the Strategic Bitcoin Reserve. Separately, the FTX collapse led to criminal forfeiture proceedings, and a judge authorized recovered forfeiture funds to compensate victims of Sam Bankman-Fried's fraud schemes.
Why this matters
The latest transfer tests how much can be inferred from government wallet movements alone. If Bitcoin deposited into the Strategic Bitcoin Reserve were confirmed sold outside the order's exceptions, it would reignite debate over whether federal agencies are following Trump's directive to hold reserves. For now, the purpose behind the Coinbase transfer remains unconfirmed.
What is confirmed
The US government moved approximately $470 million in seized crypto, including Bitcoin, wrapped Bitcoin, and USDT, to likely Coinbase Prime addresses. Arkham linked the assets to the Bitfinex hack and Alameda Research seizures. The Trump administration's Strategic Bitcoin Reserve policy prohibits selling reserve Bitcoin, with exceptions for court-ordered disposals and victim restitution. The US Marshals Service previously denied selling Bitcoin from the Samourai Wallet case.
What is still unclear
It is not confirmed whether the government intends to sell the transferred assets, perform internal wallet hygiene, or process restitution. The exact amount, purpose, and destination of the Coinbase transfer beyond Arkham's identification remain unverified.
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