The US government has transferred nearly $300 million worth of Bitcoin and Ethereum to Coinbase Prime, sparking speculation that federal authorities could be preparing to liquidate part of their crypto holdings despite President Donald Trump’s previous commitment to preserve government-owned Bitcoin.
According to blockchain analytics platform Arkham Intelligence, the transactions involved wallets controlled by the US government and included assets seized through separate criminal investigations.
Nearly $300 Million Moved to Coinbase Prime
The transfers consisted of approximately 3,940 BTC, valued at around $244 million, and 30,014 ETH, worth roughly $53 million, bringing the total value of the transactions to about $297 million.
Arkham reported that the Bitcoin originated from assets confiscated in cases involving convicted dark web marketplace operator Ryan Farace and the now defunct BTC-e exchange. The Ethereum was linked to Brian Krewson, who was convicted in connection with a cryptocurrency custody and money laundering operation.
While transfers to Coinbase Prime often trigger speculation about potential sales because the platform supports institutional trading, the move alone does not confirm that the assets have been sold.
Coinbase Prime also provides custody, financing, and other institutional services, meaning the funds could simply be undergoing administrative or custodial transfers.
Does the Transfer Conflict With Trump’s Bitcoin Reserve Order?
If the assets were ultimately sold, questions would inevitably arise about whether the transaction conflicts with President Trump’s executive order establishing the Strategic Bitcoin Reserve in March 2025.
The order stated that government owned Bitcoin deposited into the reserve would not be sold, including Bitcoin obtained through asset seizures.
However, the language of the executive order leaves room for several exceptions.
Executive Order Allows Certain Exceptions
The restriction applies specifically to Bitcoin that has officially entered the Strategic Bitcoin Reserve. It does not prohibit every government sale of seized digital assets.
The order also permits cryptocurrency to be transferred or liquidated under certain circumstances, including returning assets to verified victims, supporting law enforcement operations, complying with court orders, sharing assets with state or local agencies, or fulfilling existing legal obligations.
As a result, even if the government were to sell the transferred $297 million in Bitcoin and Ethereum, it would not automatically mean the administration had violated the executive order.
The key questions remain whether these assets had formally been placed into the Strategic Bitcoin Reserve and whether they are still subject to restitution, forfeiture proceedings, or other legal requirements that could authorize their transfer or eventual sale.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
