US government-linked wallets transferred approximately USD 103 million in cryptocurrency, including Bitcoin sent to Coinbase Prime, raising fresh questions about whether federal authorities could be preparing to sell seized digital assets.
According to on-chain analyst EmberCN, government-linked addresses moved 833.6 BTC worth USD 71.56 million and 40,285 BNB valued at USD 31.63 million. The Bitcoin reached Coinbase Prime, while the BNB passed through multiple addresses before arriving at an address ending in 81E.
EmberCN estimated that US government-linked addresses continue to hold approximately 324,000 BTC worth USD 27.7 billion, forming most of their estimated USD 28 billion digital-asset portfolio.
What does the Coinbase Transfer Mean?
Coinbase Prime provides both custody and trading infrastructure, meaning an exchange transfer alone cannot confirm liquidation. The US Marshals Service selected Coinbase Prime in July 2024 to provide custody and advanced trading services for large-cap digital assets involved in federal asset-forfeiture programs.
Similar uncertainty surrounded government-linked transfers in July, when approximately USD 297 million in seized Bitcoin and Ether moved to Coinbase Prime. Those transactions involved around 3,940 BTC and 30,000 ETH, but no sale was established from blockchain records.
Strategic Bitcoin Reserve Changes the Rules
Government Bitcoin policy changed significantly in March 2025 when President Donald Trump signed an executive order establishing the Strategic Bitcoin Reserve and a separate Digital Asset Stockpile. Under the order, Bitcoin finally forfeited and deposited into the reserve ‘shall not be sold’ and must instead be maintained as a reserve asset.
However, that restriction does not necessarily apply to every government-linked Bitcoin address. Assets involved in victim restitution, court orders, law-enforcement proceedings or other legal requirements may receive different treatment. Non-Bitcoin assets such as BNB are also managed separately under the Digital Asset Stockpile framework.
Also Read: India’s Local Crypto Exchanges Capture Just 0.7% of Inflows: Chainalysis Reports
Previous Transfers have Moved Markets
The transactional activities of the government wallet led to temporary market fluctuations. In June 2024, when 3,940 BTC worth about USD 240 million was transferred to Coinbase Prime, Bitcoin plunged by about 2%.
Similarly, in August 2024, 10,000 BTC worth USD 594 million was transferred into Coinbase Prime when Bitcoin was recorded to have declined by about 3.6%. However, it must be noted that the selling pressure had been building prior to the transfer.
For comparison, there was a definitive case of a governmental sale of 9,861 Silk Road-related BTC for total revenues of around USD 216 million in 2023. Currently, no federal agency has announced a sale involving the latest 833.6 BTC. Blockchain data confirms the transfer to Coinbase Prime, but does not have any information on what happened to the Bitcoin afterward.
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