US government moves $770 million in Bitcoin to Coinbase Prime

US Government Moves $770M in Bitcoin to Coinbase Prime

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key insights

  • The 2,456 BTC could expand estimates of previously unidentified government-controlled Bitcoin.
  • The Coinbase Prime transfer does not establish that the government sold any Bitcoin.
  • Bitfinex restitution creates a legal path for some seized assets to leave federal custody.

US government Bitcoin holdings saw a major transfer this week, with 9,261 BTC worth about $770 million reaching Coinbase Prime. Galaxy Research tracked the movements over Oct. 6 and Oct. 7, with 2,456 BTC coming from wallets it had not previously linked to federal holdings.

The transfers are significant because the U.S. government has updated its policies on seized cryptocurrency. The actions also have implications for unaccounted-for federal property and the fate of the coins.

Transfers Expand Across Two Days

Galaxy Research first tracked about 834 BTC moving on Oct. 6. The transfer carried a value of roughly $71 million at the time.

A big movement came on Oct. 7 following. There were also 9,261 BTC that changed hands for another 8,428 BTC to the same Coinbase Prime deposit address. Almost half of the Bitcoin is from a recovery of assets taken as a result of the Bitfinex hack in 2016. The rest was from previously identified Binance-related seizures.

However, 2,456 BTC stood apart from the other transfers. Galaxy had not previously identified those wallets as government holdings.

The research firm linked the coins to federal seizures based on their movement into the government’s Coinbase Prime deposit address. Galaxy also said the assets may represent previously unknown law enforcement seizures.

No Justice Department or U.S. Marshals Service statement cited in the available reports has confirmed a new seizure involving those coins.

Bitfinex assets carry legal significance

The Bitfinex connection adds weight to the transfer. U.S. authorities recovered, than 94,000 BTC tied to the 2016 hack.

Federal agents took possession of the coins in 2022 after investigators gained access to keys that controlled a portion of the stolen funds.

A federal court approved the return of more than 94,000 BTC to Bitfinex. Galaxy said the main wallet holding about 94,643 BTC remained unmoved during its latest analysis. Therefore, the latest Coinbase Prime transfer does not represent the entire Bitfinex recovery.

Galaxy also identified Bitcoin connected with Binance-related seizures. Those assets form another part of the federal cryptocurrency inventory.

The legal status of seized coins can vary.Some of the assets are still fair game for forfeiture, and others can be ordered back to the court.

Coinbase prime is not a sales proof.

The location has been a source of speculation due to the fact that Coinbase Prime is home to institutional custody and trading. But getting Bitcoin onto the platform doesn’t necessarily mean that officials sold the Bitcoin.

In 2024 the U.S. Marshals Service chose Coinbase Prime to act as the custodian and trader of seized digital assets. This arrangement was as a substitute to the older processes which frequently required Government cryptocurrency auctions.

Galaxy found that the relevant Coinbase Prime deposit address began operating in December 2025. Since then, it has received about 11,567 BTC.

Around 6,406 BTC came from wallets already labeled as government holdings. Another 5,160 BTC came from wallets that lacked previous government attribution.

Blockchain data can show when coins move into an address controlled by Coinbase.. It cannot show what happens after that—like internal trades or liquidations. Consequently, the latest transfer should not automatically be treated as evidence of government selling.

Reserve rules shape the next move

The transfers also come under the framework created by President Donald Trump’s March 2025 executive order. The order established the Strategic Bitcoin Reserve and directed that reserve Bitcoin should not be sold.

However, the policy allows certain transfers involving court orders and victim restitution. That distinction matters for assets linked to criminal seizures. Galaxy estimates that government-linked wallets now contain about 319,086 BTC. The firm said two major groups account for roughly 71% of that balance.

The first group contains about 94,643 BTC tied to the Bitfinex recovery. The second involves about 127,271 BTC linked to Chen Zhi and the LuBian mining operation.

The Justice Department filed a civil forfeiture case involving the LuBian-related Bitcoin in October 2025. The assets remain subject to legal proceedings rather than representing settled reserve property. Galaxy also placed the Oct. 7 movement among the largest daily federal Bitcoin outflows. Its analysis ranked the transaction as the ninth-largest since 2013.

Federal crypto holdings face greater scrutiny

The latest transfers highlight the difficulty of measuring the government’s actual Bitcoin ownership. Seized assets can remain under federal control without becoming permanent government property.

That distinction could become increasingly important as authorities recover more cryptocurrency from criminal investigations. It also affects estimates of how much Bitcoin sits inside the Strategic Bitcoin Reserve.

For markets, the immediate evidence shows a large transfer rather than a confirmed sale. Meanwhile, the unidentified 2,456 BTC adds another layer of uncertainty around federal crypto holdings.

The movements therefore leave two questions open. Authorities have not confirmed the source of the unidentified coins, and blockchain records do not show their ultimate disposition.

Conclusion

The recent developments of US government Bitcoin transfers reveal ongoing asset transfer to institutional custody. The $770 million transfer will place more pressure on the federal reserve’s stake in cryptocurrencies, and the unmarked wallets may yield more government-held bitcoin.

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