U.S. Government Transfers $288 Million in Seized Bitcoin and Ethereum to Coinbase Prime

On July 13, 2026, the U.S. government transferred $288 million in seized Bitcoin and Ethereum to Coinbase Prime, its official custodian. The assets, linked to criminal cases involving Brian Krewson, Ryan Farace, and BTC-e, sparked market speculation of a potential liquidation. While a March 2025 executive order by President Donald Trump bars selling Bitcoin held in the Strategic Bitcoin Reserve, these active criminal case assets sit outside the reserve, leaving them eligible for potential disposal.

Government crypto transfer to Coinbase

• ▪The United States government transfers to Coinbase Prime included approximately 3,800 Bitcoin worth $235 million and 30,000 Ethereum worth $53 million
• ▪The United States government transferred approximately $288 million worth of seized Bitcoin and Ethereum to Coinbase Prime on July 13, 2026

Seized asset criminal case origins

• ▪The transferred Ethereum was tied to a $54 million money-laundering case involving former Oracle employee Brian Krewson
• ▪The transferred Bitcoin originated from funds seized from dark-web drug dealer Ryan Farace and the defunct cryptocurrency exchange BTC-e

Custody versus sale speculation

• ▪The United States Marshals Service selected Coinbase Prime in 2024 to provide custody and trading services for forfeited digital assets
• ▪The crypto transfers revived market speculation regarding a potential government sale, though Coinbase Prime serves as the government's official custodian

Strategic Bitcoin Reserve rules

• ▪The March 2025 executive order's no-sale rule applies only to fully forfeited Bitcoin, whereas the transferred assets originate from active criminal cases
• ▪A March 2025 executive order signed by President Donald Trump established a Strategic Bitcoin Reserve and declared that deposited Bitcoin shall not be sold

Interdepartmental control dispute

• ▪Proposed congressional bills to codify the Strategic Bitcoin Reserve with a 20-year holding rule have stalled in Congress
• ▪The United States Treasury and Commerce departments are contesting which agency controls the assets within the Strategic Bitcoin Reserve