On July 13, 2026, blockchain trackers Arkham Intelligence and Galaxy Research flagged a series of transactions moving government-controlled crypto onto Coinbase Prime, the exchange’s institutional arm. Wallets linked to US authorities moved 3,940.7 Bitcoin, about $244 million at the time, and 30,014 Ether, almost $53 million, a total of nearly $297 million.
The Bitcoin portion traced back to two separate law enforcement cases. Roughly 2,875 BTC came from assets seized in connection with Ryan Farace, known online as "xanaxman," while the remainder originated from the long-defunct BTC-e exchange. The Ether holdings were linked to Brian Krewson, an individual connected to a federal crypto custody and money-laundering case.
According to Galaxy Research's Alex Thorn, the Bitcoin was routed through freshly created intermediary wallets before landing on Coinbase Prime, while the Ether moved there directly. The staggered, multi-step nature of the transfer added to speculation that officials were preparing the assets for possible liquidation.
Coinbase Prime is not simply a wallet. It is an institutional platform offering custody, financing, staking, and active trade execution, and the US Marshals Service has used it since 2024 to manage forfeited digital assets. That dual function is exactly why the July 13 transfer sparked debate: moving funds onto a platform built for trading does not automatically mean a sale occurred, but it does put the assets one step closer to the market than they were in cold storage.
As of publication, no government agency has confirmed that any of the transferred Bitcoin or Ether has actually been sold. Analysts have repeatedly cautioned that similar transfers in the past, including a 19,800 BTC movement tied to the Silk Road case in December 2024 and a 30,175 BTC transfer in April 2024, did not result in confirmed liquidations at the time.
The controversy centres on an executive order President Trump signed in March 2025, which established the Strategic Bitcoin Reserve and directed that Bitcoin seized through federal law enforcement be retained rather than sold. Treasury Secretary Scott Bessent has previously reinforced that position, stating the government would not actively buy Bitcoin for the reserve but would hold onto confiscated coins instead of liquidating them.
Here is where the policy picture gets more nuanced. Legal experts point out that Bitcoin and other digital assets are treated differently under the current framework. Bitcoin that has already been formally deposited into the Strategic Bitcoin Reserve falls under the strict no-sale mandate. Non-Bitcoin assets, including Ether, fall into a separate category, a Digital Asset Stockpile, where the Treasury Secretary retains discretion to determine an appropriate management strategy, which could include a sale under applicable law.
That distinction means the Ether transfer sits on firmer legal ground for a potential sale than the Bitcoin portion does. Whether the Bitcoin itself had already been formally absorbed into the reserve before this transfer, or was still awaiting that designation, remains unclear from public disclosures, which is part of why the episode has generated so much debate rather than a clear-cut verdict.
A bill called the American Reserve Modernisation Act of 2026, introduced in the House as H.R. 8957 on May 21, 2026, aims to convert the current executive order into permanent law. The proposed legislation would require the Treasury to formally establish both the Strategic Bitcoin Reserve and a separate Digital Asset Stockpile within 180 days of passage, with federal agencies holding assets in temporary custody until those structures are finalised.
As of mid-July 2026, the bill remains at the introduced stage, currently sitting with the House Financial Services Committee. Until it becomes law, the government's crypto holdings continue operating under executive order guidance rather than a codified statutory framework, which leaves room for exactly the kind of ambiguity this transfer has exposed.
All eyes are now on whether Coinbase Prime activity related to these specific wallets shows signs of active selling in the days ahead, or whether the funds simply sit in custody as part of routine consolidation. Given the size of the government's remaining crypto stack, close to $20.5 billion including roughly 325,000 BTC, even a full liquidation of this particular batch would represent a small fraction of total holdings, but the symbolic weight of the move is what has kept it in the headlines.
How much crypto did the US government move to Coinbase?
Government-linked wallets transferred 3,940.7 BTC worth about $244 million and 30,014 ETH worth roughly $53 million, for a combined total close to $297 million.
Where did the seized Bitcoin and Ether come from?
The Bitcoin came from cases tied to Ryan Farace and the defunct BTC-e exchange. The Ether was linked to a case involving Brian Krewson.
Does moving crypto to Coinbase Prime mean it has been sold?
Not necessarily. Coinbase Prime provides both custody and trading services to government agencies, so a transfer alone does not confirm a sale has taken place.
Does this break Trump's Strategic Bitcoin Reserve promise?
It's disputed. The March 2025 executive order bars selling Bitcoin held in the reserve, but Ether and other non-Bitcoin assets fall under a separate framework where the Treasury Secretary has discretion over disposal, giving the government more legal room to manage or sell the ETH than the BTC.
How much crypto does the US government still hold?
As of the latest data, the government holds roughly $20.5 billion in digital assets, including about 325,000 BTC along with USDT, additional ETH, and BNB.
Is there a law governing how the US manages seized crypto?
Currently, the framework rests on a 2025 executive order rather than permanent legislation. A bill, the American Reserve Modernisation Act of 2026, is under committee review but has not yet passed.
Highlights
- US government-linked wallets transferred 3,940.7 BTC, worth roughly $244 million, along with 30,014 ETH worth around $53 million, to Coinbase Prime on July 13, 2026.
- The combined transfer totalled close to $297 million, based on blockchain data from Arkham Intelligence and Galaxy Research.
- The Bitcoin originated from assets seized in cases tied to convicted dark-web dealer Ryan Farace and the defunct BTC-e exchange, while the Ether came from a case involving Brian Krewson.
- The move has raised questions about whether it conflicts with a March 2025 executive order that placed seized Bitcoin into a Strategic Bitcoin Reserve under a strict no-sale policy.
- Coinbase Prime offers both custody and active trading services, meaning the transfer alone does not confirm a sale has taken place.
- The US government's remaining crypto holdings stand at roughly $20.5 billion, including about 325,000 BTC.
- No official confirmation of a sale has been issued as of publication.
