U.S. Government Wallets Move $566 Million in Crypto to Coinbase

U.S. government-linked wallets transferred about $566 million in seized cryptocurrency to Coinbase Prime between Oct. 7 and Oct. 8, with the destination suggesting a custody or transaction workflow but not proving that a sale occurred.

The transfers included about 4,632 Bitcoin (BTC) valued at roughly $384.5 million, 119 million Tether (USDT) and 750 Wrapped Bitcoin (WBTC) worth about $62.34 million. The assets moved to addresses identified as Coinbase Prime deposit addresses.

The U.S. Marshals Service selected Coinbase Prime in 2024 to provide custody and advanced trading services for its large-cap digital assets. That role allows the platform to handle government holdings without each transfer necessarily representing a market sale.

A March 2025 executive order says finally forfeited government BTC placed in the Strategic Bitcoin Reserve shall not be sold. It preserves exceptions involving identifiable victims, court orders, law-enforcement operations and statutory forfeiture requirements. The order also created a separate United States Digital Asset Stockpile for other finally forfeited digital assets.

No public notice has identified the purpose of the latest transfers, leaving their legal and operational status unresolved.