Just as the crypto market is trying to recover, the U.S. government moved $288 million in Bitcoin and Ethereum to Coinbase Prime. The transfer has sparked a fear that the government could be preparing to sell its crypto holdings. If so, then this move could put pressure on Bitcoin and push prices lower.
US Government Moves $288M In Crypto To Coinbase Prime
According to Arkham Intelligence, U.S. government-linked wallets transferred 3,941 BTC worth about $244 million and 30,007 ETH valued at roughly $53.09 million to Coinbase Prime over the past eight hours.
The transfers involved crypto seized from cases linked to Ryan Farace, BTC-e, and Brian Krewson.
Despite all these transactions, the U.S. government remains one of the world’s largest Bitcoin holders. It controls around 324,552 BTC, 28,394 ETH, and digital assets worth more than $20.4 billion.
Timeline of Major U.S. Government Bitcoin Transfers
This isn’t the first time the U.S. government has moved a large amount of Bitcoin to Coinbase Prime. Here’s the list of transfers.
- July 13, 2026: The U.S. government moved 140.21 BTC (about $8.79 million) to Coinbase Prime.
- April 16, 2026: 8 BTC (about $606,000) linked to the 2016 Bitfinex hack was transferred to Coinbase Prime.
- April 10, 2026: Authorities sent 2.44 BTC (about $177,000) seized from the Glenn Olivio case to Coinbase Prime.
- Dec 2, 2024: The government transferred 19,800 BTC (about $1.92 billion) seized from the Silk Road case to Coinbase Prime.
- April 2, 2024: Around 30,175 BTC (about $2 billion) were moved to Coinbase Prime, marking one of the government’s biggest Bitcoin transfers.
Is the U.S. Government Selling Bitcoin?
Looking at previous transfers, there is no sign that the U.S. government plans to sell its Bitcoin. Instead, it has only moved the coins to Coinbase Prime.
Coinbase Prime serves as the institutional custodian for many U.S. government crypto assets. Funds are often transferred there for secure storage, wallet consolidation, legal processing, or victim restitution.
There is another reason why the sale is unlikely. In March 2025, the U.S. government signed an executive order that says it should keep most of its Bitcoin instead of selling it.
The government can only sell the coins in special cases, such as when a court orders money to be returned to victims or for other legal reasons. So, for now, this looks like a wallet transfer, not a Bitcoin sell-off.
Coinbase
Coinbase
Coinbase is one of the leading cryptocurrency exchanges known for making digital asset trading secure, easy, and accessible for everyone. Founded by Brian Armstrong and Fred Ehrsam in 2012, the company allows users to buy, sell, and trade cryptocurrencies. The publicly traded company provides crypto trading, custody, staking, payments, derivatives, prediction markets, and other digital-asset services for consumers, institutions, businesses, and developers. Coinbase is also expanding beyond a traditional crypto exchange through Base, Coinbase Wallet, Coinbase Advanced, Coinbase One, Coinbase Prime, and stablecoin infrastructure.
Coinbase Details
Attribute
Details
Key Products
Coinbase, Coinbase Wallet, Coinbase One, Advanced Trade, Coinbase Card, Coinbase Prime, Coinbase Commerce, Coinbase Developer Platform, Base
Trading
Spot trading, Advanced Trade, derivatives, and DEX trading
Institutional Services
Coinbase Prime, Institutional Solutions, custody, trading, and APIs
Developer Services
Developer Platform, Wallet SDK, Commerce API, Exchange API, Prime APIs, and Base Node
Blockchain
Base
Stablecoin
USD Coin (USDC)
Countries
100+ countries
Crypto Focus
Trading, custody, staking, payments, stablecoins, DeFi, Web3, and onchain infrastructure
Notable Blockchain Project
Base, Coinbase's Layer-2 blockchain
Current Positioning
Coinbase is building an “Everything Exchange” covering crypto, equities, derivatives, prediction markets, and more.
Key Features of Coinbase:
Users can buy, sell, exchange, and manage cryptocurrencies such as Bitcoin and Ethereum.
Advanced trading tools and features are available for professional and experienced traders.
Offers a self-custody crypto wallet, now available through the Base app.
Users can earn rewards by staking supported cryptocurrencies on the platform.
Coinbase Prime offers institutional services such as trading and crypto custody.
APIs and on-chain solutions help developers build and manage crypto applications.
Platform Security and Regulatory Compliance
Platform Security Measures
Cold storage: More than 90 percent of customers’ funds are held offline in secure vaults.
Data encryption: User information is encrypted using AES-256.
Account protection: MFA and biometrics serve to protect the user’s account.
Segregation of assets: Customer crypto funds and fiat balance are segregated and cannot be used without the customer’s consent.
Regulatory Compliance
US Licenses: It is registered with FinCEN and holds licenses for conducting money transfers in many US states, including NYDFS BitLicense.
Legal Regulations: Adheres to the USA PATRIOT Act and Bank Secrecy Act through identification and transaction monitoring.
Sanctions Screening: Transfers are checked against OFAC lists to help prevent illegal on-chain activity.
Coinbase Products
Product
Category
Coinbase
Crypto Exchange
Coinbase Wallet
Self-Custody Wallet
Coinbase One
Subscription
Advanced Trade
Advanced Trading
Coinbase Card
Crypto Card
Coinbase Prime
Institutional
Coinbase Commerce
Crypto Payments
Coinbase Business
Business Platform
Coinbase Developer Platform (CDP)
Developer Platform
Base
Layer 2 Blockchain
Base App
Onchain App
Coinbase Staking
Staking
Coinbase Derivatives
Derivatives
Prediction Markets
Prediction Trading
Coinbase Ventures
Venture Capital
Coinbase Key Supported Regions
North America: United States (all states except Hawaii), Canada
Europe: United Kingdom, Germany, France, Spain, Netherlands, Italy, and most EEA member countries
Asia-Pacific: Singapore, Australia, India, Turkey, Philippines, Vietnam, Pakistan
Africa & South America: South Africa, Brazil, and selected developing markets
support@coinbase.com
WalletCentralised Exchange
Arkham Intelligence
Arkham Intelligence
Arkham Intelligence is a blockchain analytics platform that provides users with advanced tools to discover insights about blockchain transactions and entities.
Company Details
Founder: Miguel Morel
Founded: 2020
Headquarters: New York, United States
Key Features:
Provides graphs and charts for visualizing and tracking blockchain transactions.
The Arkham Intel Exchange enables users to buy and sell intelligence related to blockchain addresses.
Supports multiple blockchains that allow users to investigate activities across different networks.
Users can track massive transactions and keep an eye on whale moments across different blockchains.
Crypto intelligence
