US government moved $103M in seized BTC and BNB to Coinbase Prime, signaling possible liquidation but no sale confirmed yet.
Regulation & Gov ·
U.S. government-controlled wallets moved approximately $103.2 million in seized cryptocurrency on Tuesday, transferring 833.6 BTC and 40,285 BNB through multiple addresses, with portions landing at Coinbase Prime deposit addresses. The Bitcoin originated from two distinct sources: forfeited HashFlare fraud funds tied to Estonian operators Sergei Potapenko and Ivan Turõgin, and assets from the 2016 Bitfinex hack. The BNB was traced to seized Alameda Research holdings. No sale has been confirmed, though movements to Coinbase Prime are typically interpreted by market observers as preparation for liquidation.
The transfers underscore the U.S. government's significant crypto holdings, which Arkham's tracking ranks as the largest of any government—approximately 325,000 BTC compared to the U.K.'s 61,245 BTC and El Salvador's 7,200 BTC. Coinbase Prime functions both as a trading platform and custodian service, meaning deposits can signify either storage or preparation for sale. A prior $288 million transfer in July, for instance, remained in custody rather than being liquidated.
Government asset sales carry regulatory constraints. A March 2025 executive order established a Strategic Bitcoin Reserve from forfeited holdings that cannot be sold, while BNB and other non-Bitcoin digital assets fall under Treasury's Digital Asset Stockpile, which can only be deployed for victim restitution, law enforcement operations, or legal obligations. Treasury Secretary Scott Bessent's discretionary authority over these transfers remains undefined in available disclosures, leaving the rationale and intended outcome of this week's movement unclear.