US government moves $470 million in seized crypto to Coinbase wallets

On October 7, 2026, the United States government transferred approximately $470 million in seized cryptocurrency, including 833.6 Bitcoin and various stablecoins, to Coinbase Prime. The assets originate from high-profile criminal forfeitures, including the Bitfinex hack, the FTX collapse, and the HashFlare fraud case. While Coinbase Prime serves as the official custodian for the U.S. Marshals Service, the transfers have revived market concerns over potential liquidations, testing the boundaries of President Trump's March 2025 executive order establishing a Strategic Bitcoin Reserve with a strict no-sale policy.

October 2026 government cryptocurrency transfers

• ▪The United States government transferred 40,285 BNB, valued at approximately $31.63 million, from Alameda Research seizures to intermediary wallets on October 7, 2026
• ▪The October 7, 2026 transfer of seized cryptocurrency to Coinbase Prime does not confirm an active sale, as the United States Marshals Service selected Coinbase Prime in July 2024 for custody of forfeited digital assets
• ▪United States government wallets transferred approximately $470 million in seized digital assets, including 833.6 Bitcoin valued at approximately $71.6 million, wrapped Bitcoin, and USDT, to likely Coinbase Prime on October 7, 2026
• ▪The United States government transferred $94.15 million in USDT tied to forfeited funds from the FTX and Alameda Research cases on October 7, 2026

Prosecution of Sergei Potapenko and Ivan Turõgin

• ▪Approximately 568.7 of the Bitcoin transferred to Coinbase Prime on October 7, 2026, originated from assets forfeited by Estonian nationals Sergei Potapenko and Ivan Turõgin, the operators of the fraudulent crypto-mining service HashFlare
• ▪Sergei Potapenko and Ivan Turõgin pleaded guilty to conspiracy to commit wire fraud in February 2025 and were sentenced in August 2025 to 16 months of time served
• ▪Sergei Potapenko and Ivan Turõgin agreed to forfeit assets worth more than $400 million as of their February 2025 plea date

Previous government transfers to Coinbase

• ▪The United States government previously transferred approximately $288 million to $297 million in seized digital assets, primarily Bitcoin, to Coinbase Prime in mid-July 2026
• ▪The United States government routed approximately $984,000 in LINK and AAVE tied to FTX to Coinbase Prime in June 2026
• ▪The United States government's transfer of 19,800 Bitcoin from the Silk Road haul to Coinbase in December 2024 caused Bitcoin's price to decline by more than 2% within 24 hours

March 2025 executive order on digital assets

• ▪The March 2025 executive order established a Digital Asset Stockpile for non-Bitcoin assets, directing the Treasury Department to determine strategies for their responsible stewardship
• ▪A March 2025 executive order signed by President Donald Trump established a Strategic Bitcoin Reserve and decreed that Bitcoin deposited into the reserve shall not be sold
• ▪The March 2025 executive order establishing the Strategic Bitcoin Reserve permits the disposal of seized digital assets when required by a court or law, or to compensate verified crime victims

National government Bitcoin holdings

• ▪Blockchain analytics firm Arkham Intelligence estimates that the United States government holds approximately 325,000 Bitcoin, making it the largest national holder ahead of the United Kingdom and El Salvador
• ▪The United Kingdom's government Bitcoin holdings of 61,245 coins originated almost entirely from a fraud that affected over 120,000 Chinese pensioners

Debatable claims

• ▪Establishing a strategic cryptocurrency reserve is an inappropriate role for the US government
• ▪Large US government cryptocurrency holdings pose an unacceptable risk to market stability