The United States government moved 9,261 BTC to Coinbase Prime within a 48-hour window between October 6 and 7, 2026. Fresh on-chain analysis from Galaxy Research revealed that the total value of the transferred assets reached $770 million, refuting earlier market reports that had only detected an inflow of $470 million worth of coins.
Nearly half of the transferred Bitcoin originated from funds seized in connection with the 2016 Bitfinex hack, a money laundering case involving Ilya Lichtenstein and Heather Morgan. Another portion of the coins was drawn from wallets seized in the Binance exchange case. Beyond these known historical sources, Galaxy’s on-chain trackers identified an outflow of 2,456 BTC from a new wallet that had never previously been tagged as belonging to the federal government.
Just a Vault Transfer
Inflows worth hundreds of millions of dollars into crypto exchanges routinely trigger panic over potential mass sell-offs, but movements from government-held wallets carry a different context. Asset transfers to Coinbase Prime deposit addresses do not indicate that the coins are headed for the order books to be sold.
The US Marshals Service has contracted Coinbase Prime since 2024 as the official custody provider for government-seized assets. Blockchain records show the government’s deposit wallet on the platform has been actively operating since December 2025. To date, this dedicated receiving wallet has taken in 11,567 BTC from various federal enforcement actions. The government’s move is purely a transfer of seized evidence into the third-party vault service contracted by the state.
Victim Restitution Exception
The US government’s ability to liquidate seized Bitcoin is also strictly bound by law. Under an executive order establishing a Strategic Bitcoin Reserve signed by President Donald Trump on March 6, 2025, the nation is formally barred from selling its Bitcoin holdings.
The ban on asset sales leaves room for court-ordered restitution processes. This legal exception ensures that the government must return assets to legitimate crime victims, such as the 94,643 BTC that a judge has already ordered returned directly to Bitfinex.
The federal government’s crypto stockpile currently stands at massive levels. Galaxy Research analysts calculate that total holdings across all US government-linked wallet addresses exceed 319,086 BTC. The distribution is heavily concentrated: 71% of these holdings originate purely from two legal seizures, namely 127,271 BTC seized in the Prince Group case involving Chen Zhi, and 94,643 BTC from the Bitfinex asset recovery efforts.
Bitcoin flows heading to exchanges often trigger alarm bells across the market, but movements from law enforcement wallets prove otherwise. This latest batch of transfers was not designed to put downward pressure on prices, but merely to reorganize storage vaults.
Reported by crypto.news.
Read also: What Is Bitcoin Halving?
Previously: US Government Moves $470 Million in Crypto to Coinbase Prime - A Classic Step Toward Liquidation
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.
