U.S. transfers $288M in seized bitcoin and ether to Coinbase Prime

On Monday, blockchain wallets linked to the U.S. government transferred more than $288 million in seized bitcoin and ether to Coinbase Prime, moving roughly 3,800.5 BTC and 30,007 ETH in multiple transactions, Arkham Intelligence reported.

Arkham's data show the assets originated from wallets tied to a range of criminal investigations and forfeitures. Some funds were linked to wallets labeled for Ryan Farace and Brian Krewson. Farace was convicted of selling counterfeit Xanax pills on dark web marketplaces. Krewson has been accused of storing and laundering about $54 million in crypto proceeds connected to narcotics trafficking. Other transferred funds traced back to the defunct exchange BTC-e, which authorities say handled billions in illicit transactions before its shutdown in 2017.

Coinbase Prime provides custody, trading and related services to institutional clients. Arkham noted the transfers were executed in multiple batches. Moving assets to an institutional custody platform does not necessarily indicate an imminent sale. A March 2025 executive order from the White House directed seized bitcoin into a Strategic Bitcoin Reserve and instructed federal agencies to refrain from selling seized cryptocurrency.

Arkham estimates wallets linked to U.S. government agencies hold a crypto portfolio valued at more than $20 billion, including about 324,552 BTC obtained largely through law enforcement seizures. The portfolio also contains other tokens, including USDT, BNB and ZEC, according to Arkham's analysis.

Law enforcement seizures of cryptocurrency have increased in size and visibility as authorities pursue cases tied to darknet markets, money laundering and ransomware. Agencies have increasingly used centralized custodians and exchanges to manage confiscated assets. The Monday transfers add to the stock of government-controlled crypto held on exchanges and in custody platforms.