US government moves $770M of seized Bitcoin to Coinbase Prime
The U.S. government transferred 9,261 Bitcoin, valued at roughly $770 million, to a Coinbase Prime custody address over the past two days. Galaxy Research said about half of the coins came from the Bitfinex hack and portions from known Binance-related seizures, while 2,456 BTC appear to be newly identified holdings sent to the government’s seizure address.
Why It Matters
Large custodial movements of seized crypto signal ongoing law enforcement recoveries from prior exploits and concentrate assets in a single institutional custody provider, with implications for how those assets might be managed under existing policy. The transfers also intersect with a March 2025 executive order that directs seized Bitcoin not to be sold and to be added to a Strategic Bitcoin Reserve, creating questions about future disposition.
Key Facts
- Amount moved: 9,261 BTC (≈ $770 million)
- Newly identified funds: 2,456 BTC sent to the government seizure address
- Source attribution: About half recovered from Bitfinex hackers; additional portions from known Binance seizures (per Galaxy Research)
- Custody provider: Coinbase Prime
- Custody use since: US Marshals Service has used Coinbase Prime to hold seized assets since 2024 (per report)
Over the last two days the U.S. government moved 9,261 Bitcoin, worth about $770 million at current prices, into a Coinbase Prime custody address, according to on-chain analysis cited by Galaxy Research. The research group reported that roughly half of the transferred coins trace back to the Bitfinex hack, while other portions are linked to prior seizures associated with Binance-related addresses. Galaxy Research also flagged that 2,456 BTC in the transfer came from previously unidentified holdings and were routed to the government’s seizure address on Coinbase Prime; those funds may represent new law enforcement recoveries. The on-chain flows are consistent with continued asset recoveries by federal authorities from earlier crypto exploits. Coinbase Prime has been the custody provider used by the U.S. Marshals Service to manage seized crypto assets since 2024, and similar large transfers have occurred before: in July the government moved roughly $297 million in Bitcoin and Ether to Coinbase Prime from earlier high-profile seizures. Past movements from addresses labeled as government wallets have at times prompted market speculation about possible liquidations. A sale of these seized Bitcoin would be at odds with an executive order issued in March 2025 by President Donald Trump, which stated that seized Bitcoin should not be sold and should instead be incorporated into a Strategic Bitcoin Reserve. Cointelegraph has reached out to the U.S. Marshals Service and the Department of Justice for comment on the recent transfers but had not received a response at the time of reporting.
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