US government moves $297M in seized Bitcoin, Ether to Coinbase Prime

[Oshosondy]

I saw it on https://cointelegraph.com/news/us-government-moves-297m-in-seized-bitcoin-ether-to-coinbase-prime

https://arkm.com/explorer/entity/usg
Data from Arkham shows 3,940 Bitcoin (BTC) (worth $243.95 million) and 30,014 Ether (ETH) (worth $53.09 million) were sent to Coinbase Prime on Monday. The funds were linked to several high-profile US government crypto seizures.

This is very small than the total holding that was suggested to be 328000 BTC in the reserve.

What do you think about this? What if it is sold? I think having a reserve does not mean part of the money in the reserve can not be sold.

[Free Market Capitalist]

What do you think about this? What if it is sold? I think having a reserve does not mean part of the money in the reserve can not be sold.

It's probably nothing; they'll likely just leave them there in custody, and that's it. Although, coming from Trump, nothing would surprise me—after all, he also said at a Bitcoin conference, “You never sell your Bitcoin,” and then sold Bitcoin through his companies. But I think that at the federal level, he couldn't bypass his own Strategic Reserve order without first revoking it, or he could face legal problems.

[Dave1]

What do you think about this? What if it is sold? I think having a reserve does not mean part of the money in the reserve can not be sold.

I also don't think that the US government under Trump will sold any of their crypto because we all know that he wants US to be great and that includes crypto. Maybe they just moved it to Coinbase Prime for them to hold on it as there could be agreement with the administration and Coinbase to be their prime custodian.

I do hope though that it won't scare any investors and think that they are going to sell it sometime. Because it might cause the market to go nosedive again.

[retaur]

It's probably some sort of backup. If they were wanting to sell it they could probably pass a bill to issue treasury notes backed by the crypto so they keep holding the crypto while getting to take loans against it with none of the risk. Or similar to what the bank of England did with its gold reserves (but not the selling then back to countries they'd pillaged them from part).

I assume they also have to run tests to prove they maintain control over the funds.

[The Cryptovator]

Data from Arkham shows 3,940 Bitcoin (BTC) (worth $243.95 million) and 30,014 Ether (ETH) (worth $53.09 million) were sent to Coinbase Prime on Monday. The funds were linked to several high-profile US government crypto seizures.

This is very small than the total holding that was suggested to be 328000 BTC in the reserve.

What do you think about this? What if it is sold? I think having a reserve does not mean part of the money in the reserve can not be sold.

During sales, although the market reacts negatively, I consider them normal trading. "Reserve" doesn't mean it's freezing forever; even Saylor accumulates Bitcoin that's not forever. They have to sell when necessary; we shouldn't be disappointed or panic for these kinds of sales. On the other hand, we also don't need to be very happy when governments or big institutions purchase Bitcoin.

However, when someone moves their Bitcoin or other altcoins into Coinbase, we consider it probably going to sale. And then the market reacts accordingly; it's due to sales pressure and panic. This situation won't last longer since, on the other end, someone is buying those coins. We shouldn't be afraid about something that we can't control.

[Bitcoin-Forever]

I saw it on https://cointelegraph.com/news/us-government-moves-297m-in-seized-bitcoin-ether-to-coinbase-prime

https://arkm.com/explorer/entity/usg
Data from Arkham shows 3,940 Bitcoin (BTC) (worth $243.95 million) and 30,014 Ether (ETH) (worth $53.09 million) were sent to Coinbase Prime on Monday. The funds were linked to several high-profile US government crypto seizures.

This is very small than the total holding that was suggested to be 328000 BTC in the reserve.

What do you think about this? What if it is sold? I think having a reserve does not mean part of the money in the reserve can not be sold.

One thing I don't like about government seizure in this manner is that even after the recovery back from the hackers, this coins remains in government custody and they were never returning back to the right owner from the affected centralized platforms .

Also, if all these were sold, it does not even move an inch from other holdens with the government treasury, anything they can decided to do with this coins as long as they are not the real owners, while not every move to sell in large quantity like this always cause the market to react.

[DanWalker]

What do you think about this?

According to the executive order signed by Trump in March 2025, all confiscated Bitcoin is to be kept as a strategic reserve and not sold. Based on that order, they cannot sell it unless a new executive order replaces it.

However, politic is far more complicated than what they want us to know. So it is hard to tell what they are really doing. This could just be a test, or it could be a way to gauge market reaction before officially announcing the Bitcoin sale. Anything is possible.

[VRExpress]

What do you think about this?

According to the executive order signed by Trump in March 2025, all confiscated Bitcoin is to be kept as a strategic reserve and not sold. Based on that order, they cannot sell it unless a new executive order replaces it.

However, politic is far more complicated than what they want us to know. So it is hard to tell what they are really doing. This could just be a test, or it could be a way to gauge market reaction before officially announcing the Bitcoin sale. Anything is possible.

So the safest place for the assets is on crypto exchanges?
If they can not sell it wouldn't it be better left in a crypto wallet?

Coming from Donald Trump anything can still happen, I don't trust him a bit.
Such illegal Bitcoin will even better be sent away to a address where it will remain lost forever.

In return it helps all Bitcoin investors and holders as a whole.
Who is with me on this ?

[EL MOHA]

One thing I don't like about government seizure in this manner is that even after the recovery back from the hackers, this coins remains in government custody and they were never returning back to the right owner from the affected centralized platforms .

It’s actually not a recovered asset from hackers according to what I just read rather it was a government seizures and usually what confiscated assets are actually used for is to actually been auctioned but we all know the the US actually were with the intention of holding this kind of coins as reserve funds, I think OP is actually surprised that they are selling the coins instead of holding. Although it has just been moved to coinbase but that doesn’t mean they are selling although the question remains why is the coins moved to a centralized exchange and not wallet.

Nonetheless I am not surprised I don’t actually believe anything like anyone is not selling their bitcoin, the only holder I know of who isn’t looking like they are going to sell their bitcoin is Satoshi and any bitcoin send through OP_Return.

[Donneski]

Looking at amount of Bitcoin moved, you can see that it's very small when compared to total Bitcoin that's believed to be controlled by the government of the United States so I don't see any change to the bigger picture even if they decide to sell the moved coin.

Also, the fact that such amount of assets were transferred to Coinbase Prime does not necessarily mean they'll sell it immediately. In the past, we've seen the market react due to wallet movements only for us to later learn that rumours aren't true so I'll wait to official confirmation.

[Hazink]

I can go with them just moving the coins their for custody rather than the speculated selling news. Coinbase Prime doesn't just handle selling alone its institutes which service including holding of large funds. Let's also not forget that in 2024, the US marshal service approved Coinbase prime and gave them custody contract of crypto asset so it could also be that this funds where moved their for it to be held and not for selling purpose.

[Z-tight]

Since Coinbase prime is the designated institutional custodian to hold and trade U.S.'s confiscated assets, it could also be that they do not have any plans of selling the coins that have been moved there.

Confiscated assets are also supposed to form the Strategic BTC reserve established by Donald Trump through an executive order, so it would be crazy to go contrary to that, not like it would be the first crazy thing Trump has done anyway.
I would not worry about this, though i can't say the same for many crypto holders. I mean, even if they actually have plans of selling, it is not too great an amount to lose sleep over.

[YOSHIE]

What do you think about this? What if it is sold? I think having a reserve does not mean part of the money in the reserve can not be sold.

There are two main risk factors involved in the US Government moving $297 million in Bitcoin assets to Coinbase Prime.
1. If the transfer of Bitcoin carried out by the US government has the potential and has pressure on the sale or the possibility of the asset being liquidated, of course this year we will see the crypto market in the red, automatically the price of Bitcoin will fall even further, reaching the $30-$40k/Bitcoin level.
2. But if you transfer Bitcoin to Coinbase Prime, is one of the factors for institutional storage where the US government wants Bitcoin assets to be transferred safely, not a sales element, of course there is no change for the crypto market, the price of Bitcoin in the future is likely to be much higher.

For this reason, these two factors are enough to make investors and the crypto market think hard about Bitcoin, but as far as I know, confiscated assets are Bitcoin assets that are owned individually/privately/companies and so on, Apart from criminal case assets or confiscation being different, the method of selling confiscated assets also has a different jurisdiction from individual assets.

[Publictalk792]

This is where smart planning reserve framing comes in that confuses people. In March, Trump signed an executive order making the Bitcoin Strategic Reserve, and entire idea was to “seize” Bitcoin and to hold it. In fact, Bitcoin price rise to $11,360 on Coinbase Prime has caused a few questions after the move of ~3,940 BTC from the exchange.
Coinbase Prime is holding platform used by large groups for storage, not simply selling. Government had previously used it for holding, so that this move does not surely signal sell-off is coming.
The "reserve does not mean you can't sell part of it" argument is of course correct, but politically difficult for administration that turned no-sell position into talking point. If this sale is proven, it will be huge u-turn and cryptocurrency market would take a hit.