Blockchain data recorded a transfer that immediately caught market attention: on Monday, July 13, 2026, the United States government moved nearly $297 million worth of seized Bitcoin and Ether to Coinbase Prime. The transaction comprised approximately 3,940 BTC (around $243.95 million) and roughly 30,014 ETH (about $53.09 million).
Arkham’s government wallet tracker was the first to flag the movement, while on-chain analytics account @lookonchain on X confirmed nearly identical figures - 3,941 BTC and 30,007 ETH - over an eight-hour window. This marks one of the largest transfers from US government-linked wallets to Coinbase Prime in 2026.
Where Did These Assets Come From?
Galaxy Research head of research Alex Thorn noted that the transferred Bitcoin originated from seized assets tied to Ryan Farace - known by his online alias ‘Xanaxman’ - and the long-defunct crypto exchange BTC-e, which was shut down by the government. The Ether, meanwhile, is linked to wallets belonging to Brian Krewson, an Oracle employee implicated in a $54 million federal crypto custody and money laundering case.
The US Marshals Service selected Coinbase Prime back in 2024 to custody and trade portions of seized digital assets. A similar pattern has played out multiple times this year: in June, the government transferred roughly $984,000 in assets linked to FTX and Alameda Research, and in April, around 2,438 BTC from a separate criminal case also landed on the platform.
Why Is the Market on Edge?
Deposits to Coinbase Prime do not automatically indicate that the government intends to sell. The platform provides custody, trade execution, financing, and staking services for institutions - meaning the transfer could simply be a wallet consolidation into managed custody. Nonetheless, the move has reignited questions regarding President Donald Trump’s policies.
Through a March 2025 executive order, Trump established the Strategic Bitcoin Reserve with strict rules: Bitcoin placed into the reserve ‘cannot be sold’ and must remain a national reserve asset. Ether and other non-Bitcoin digital assets are directed into a separate stockpile managed by the Treasury Department. The order contains exceptions - assets can be returned to verified victims, utilized for law enforcement needs, or transferred pursuant to court orders. For a sense of scale, US government-linked wallets are estimated to still hold a total of around $20.5 billion in crypto, predominantly comprising roughly 325,000 BTC.
For now, on-chain records merely show funds being moved, not definitive evidence of an intent to sell. There has been no official confirmation regarding the government’s ultimate instructions to Coinbase Prime. The true signal will only become clear through subsequent wallet activity, trading records, or official statements - and until then, this $297 million transfer remains a closely watched puzzle for Bitcoin holders.
Reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
