Why did the US government send $71M in Bitcoin to Coinbase Prime?

US government linked wallets have transferred $103 million in Bitcoin and BNB, sending more than $71 million in BTC to Coinbase Prime as the transaction raises questions over whether the assets could be headed for a sale.

Summary

• US government linked wallets transferred 833.6 BTC and 40,285 BNB worth a combined $103 million, according to EmberCN.
• The $71.56 million in Bitcoin was sent to Coinbase Prime, while the BNB moved through several addresses before reaching 0xBE7...81E.
• A transfer to Coinbase Prime does not confirm a sale because the platform provides both custody and trading services for US government assets.
• Previous government Bitcoin transfers have been followed by short term price declines, though several movements were never confirmed as sales.
• Bitcoin deposited into the Strategic Bitcoin Reserve cannot be sold under the 2025 executive order, while other government held digital assets are managed separately.

According to on chain analyst EmberCN, a U.S. government address transferred 833.6 BTC worth $71.56 million and 40,285 BNB valued at $31.63 million. The transactions were worth approximately $103 million combined.

6 小时前，美国政府地址转出了 833.6 枚 BTC ($7156 万) 及 40,285 枚 BNB ($3163 万)，价值 $1.03 亿。

833.6 枚 BTC 进入了 Coinbase Prime；40,285 枚 BNB 经多次转移后目前位于 0xBE7...81E 地址。

美国政府地址目前仍持有价值 $280 亿的资产，主要是 32.4 万枚 BTC ($277 亿)。... pic.twitter.com/C6Kwu93kfo --- 余烬 (@EmberCN) October 7, 2026

The Bitcoin was sent to Coinbase Prime, while the BNB passed through several addresses before reaching an address beginning with 0xBE7 and ending in 81E.

EmberCN estimated that U.S. government linked addresses still hold around $28 billion in digital assets, with Bitcoin accounting for most of the total. The addresses hold roughly 324,000 BTC valued at $27.7 billion.

Is the US government selling its Bitcoin?

Sending 833.6 BTC to Coinbase Prime has raised the possibility of a sale because the platform can execute trades, but the on chain movement does not confirm that the Bitcoin has been sold.

The U.S. Marshals Service selected Coinbase Prime for custody and advanced trading services in July 2024 for large cap digital assets managed as part of federal asset forfeiture operations. Assets reaching the platform can therefore be held in custody or used for trading.

A similar question emerged in July when government linked wallets moved nearly $297 million in seized Bitcoin and Ether to Coinbase Prime, crypto.news previously reported.

Around 3,940 BTC worth $244 million and approximately 30,000 ETH valued near $53 million were involved in those transactions. The Bitcoin had been linked to seizures involving Ryan Farace, known as "Xanaxman," and the closed BTC e exchange, while the Ether came from a separate federal case.

No sale was established from the July transactions. Blockchain records could confirm that the assets reached Coinbase Prime but could not establish whether officials instructed the platform to liquidate them.

Federal policy toward government owned Bitcoin has changed since several of the large transfers seen in 2024.

President Donald Trump signed an executive order in March 2025 creating the Strategic Bitcoin Reserve and a separate U.S. Digital Asset Stockpile for other cryptocurrencies. Under the order, Bitcoin that has been finally forfeited and deposited into the Strategic Bitcoin Reserve "shall not be sold" and must be maintained as a reserve asset.

The restriction does not cover every cryptocurrency visible in a government linked wallet regardless of its legal status. The order contains provisions for assets subject to court orders, victim restitution, law enforcement operations and other requirements under existing law.

Government held cryptocurrencies other than Bitcoin are treated separately. Assets such as BNB can enter the U.S. Digital Asset Stockpile, where the Treasury secretary is allowed to determine strategies for their responsible management under applicable law.

The current BNB movement therefore has a different policy backdrop from Bitcoin held in the Strategic Bitcoin Reserve. EmberCN said the 40,285 BNB moved through multiple addresses before reaching 0xBE7...81E, rather than reporting that the tokens had reached Coinbase Prime.

How did Bitcoin react to previous US government transfers?

Earlier government Bitcoin transfers to Coinbase have sometimes been followed by short term price declines, although a transfer itself did not establish that the government sold the coins.

In June 2024, U.S. authorities moved 3,940 BTC worth around $240 million to Coinbase Prime. The Bitcoin had been forfeited by Silk Road vendor Banmeet Singh. BTC fell roughly 2% around the transaction as traders considered the possibility that the coins could enter the market.

Another 10,000 BTC worth roughly $594 million was sent to Coinbase Prime in August 2024. Bitcoin dropped 3.6% around the news, although the decline had begun before the seized Silk Road funds reached Coinbase Prime.

A much larger movement occurred in July 2024 when a government wallet transferred approximately $2 billion in Bitcoin and split the funds between two addresses. Arkham Intelligence said at the time that it believed 10,000 BTC represented a deposit to an institutional custody or service provider. Bitcoin fell around 1% following reports of the movement.

By December, another government linked wallet moved nearly 20,000 BTC worth approximately $1.92 billion. The coins were sent to a new address and subsequently divided between wallets holding around 10,000 BTC and 9,800 BTC.

Government authorities have sold seized Bitcoin in the past. In March 2023, officials sold 9,861 BTC connected to Silk Road for approximately $216 million. The disposal was later disclosed in a court filing, providing confirmation that the coins had actually been sold instead of relying solely on blockchain movements.

The 2024 transactions took place before the March 2025 executive order established the Strategic Bitcoin Reserve and instructed the government not to sell Bitcoin deposited into it.

More recent movements have continued to leave the purpose of Coinbase Prime transfers unclear from blockchain data alone. Government wallets moved seized FTX and Alameda assets worth nearly $984,000 in June, with at least $768,000 reaching Coinbase Prime. Arkham said the assets were intended for the FTX estate to help repay creditors.

No federal agency has announced a sale connected to the latest 833.6 BTC transfer. EmberCN's data establishes that the Bitcoin reached Coinbase Prime, while determining whether the coins were sold would require further transaction data or confirmation from the government or its service provider.

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