US Moves $297 Million in Seized Cryptocurrency to Coinbase Prime
Synopsis
Key Highlights The US government deposited $297M of Bitcoin (BTC) & Ether (ETH) to Coinbase Prime. The money came from three separate cases of criminal forfeiture. These transfers are not linked to the sale…
Key Highlights
- The US government deposited $297M of Bitcoin (BTC) & Ether (ETH) to Coinbase Prime.
- The money came from three separate cases of criminal forfeiture.
- These transfers are not linked to the sale of any cryptocurrencies, which have yet to be confirmed as may.
Blockchain intelligence firm Arkham revealed that the US government transferred $297 million worth of Bitcoin (BTC) and Ether (ETH) to Coinbase Prime in two separate transactions. The initial transfer was $8.8 million, followed about three hours later by a second transfer of $288.33 million.
The larger transfer consisted of funds from forfeitures in three different criminal cases, involving seized crypto affiliated with Brian Krewson, the now-closed BTC-e cryptocurrency exchange and dark web drug dealer Ryan Farace.
Similar Transfers Have Happened Before
It is not the first case where cryptocurrency seized has been transferred to Coinbase Prime without being directly linked to a completed sale.
Transfers of a similar nature in January fueled talk that the U.S. government had been offloading Bitcoin, although no sale was ever confirmed. In June, the government transferred the seized FTX Chainlink tokens and in May it also confiscated some Alameda Research altcoins, but none were confirmed to have been sold.
The transfers on Monday were in a similar fashion, but much more extensive. It has not been confirmed by authorities whether the latest transfers are for sale.
Bitcoin Reserve and Seized Assets
In March 2025, President Donald Trump signed an executive order establishing the Strategic Bitcoin Reserve to do with its Bitcoins as well: A portion of it is protecting against the government selling its Bitcoins. That order was never made into law, though.
In May, lawmakers proposed to create a national reserve to transfer its 20-year holding period into the Private Bills committee.
Most of these cryptocurrency fortunes that are held by the US government derive from criminal forfeiture. Brian Krewson was accused by the US Department of Justice of assisting in storing and laundering $54 million in cryptocurrency on behalf of two formerly convicted drug traffickers, while between 2011 and 2017, more than $9 billion was transferred through the BTC-e exchange before its closure.
Ryan Farace also earned over 9,138 Bitcoin through dark web drug shipments and was sentenced to 54 months in prison in 2023, said authorities.
Source: Reuters
At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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