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US government moves 17,795 Bitcoin worth $1.5 billion in three days
Wallets tied to federal seizures have shipped thousands of coins toward Coinbase Prime, reviving the usual question of whether Washington is preparing to sell
The US government has moved 17,795 Bitcoin worth $1.5 billion over the past three days.
When the world’s largest known sovereign Bitcoin holder starts moving coins, traders pay attention. The bigger question is not whether the coins moved. It is what Washington plans to do with them.
Where the coins went
On-chain trackers have been following the trail. Data documented by Arkham Intelligence and Galaxy Research shows government-linked wallets sent approximately 9,261 BTC, valued at around $770 million, to Coinbase Prime on October 7-8, 2026.
Those transfers did not happen in one dramatic lump. They arrived in batches, which is fairly standard practice when large holders move funds between custody arrangements.
One smaller batch of 833.6 BTC, worth roughly $71.6 million, also landed at Coinbase. It traveled alongside approximately 40,285 BNB, valued at about $31.6 million.
Coinbase Prime is the institutional arm of Coinbase, offering custody and trading services for large clients. It has historically worked with federal agencies, including the US Marshals Service, the office that typically handles forfeited property.
How Washington ended up holding so much Bitcoin
The US government did not buy its Bitcoin. It confiscated it. Major sources include the Bitfinex hack, forfeitures connected to Prince Group, and confiscations tied to Silk Road.
Estimates from Arkham and Galaxy put US holdings at approximately 319,000 to 325,000 BTC, valued at roughly $27 billion to $28 billion.
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That makes the US the largest sovereign holder of Bitcoin, ahead of countries such as the UK and El Salvador.
In March 2025, President Trump signed an executive order that prohibits sales of assets from the Strategic Bitcoin Reserve, with exceptions for specific circumstances involving victim compensation.
Why traders are watching anyway
No official announcement has confirmed any plan to liquidate these coins. Even so, the transfers to Coinbase Prime have sparked short-term speculation.
The victim compensation exception is the detail worth watching closely. Some of the seized coins, particularly those connected to hacks like Bitfinex, have identifiable victims. Returning funds to them could require moving or converting assets, even under a no-sale policy.
There is also a distinction between coins formally placed in the Strategic Bitcoin Reserve and coins still tied up in ongoing legal processes. Not every seized Bitcoin necessarily follows the same rules at the same time.
What this means for the market
When an entity controls an estimated 319,000 to 325,000 BTC, even routine housekeeping can move sentiment. A 17,795 BTC transfer is meaningful on its own. If any significant portion were sold on the open market, it could add supply that buyers would need to absorb.
The more likely reading, based on the stated policy, is custody management rather than liquidation. The research findings describe the moves as consistent with managing a large reserve, not with an imminent sale.
Firms like Arkham Intelligence and Galaxy Research can follow federal wallets in near real time, which means the public often sees these moves before any agency explains them.
What to watch next: any formal statement from the agencies involved, court filings tied to victim restitution in cases like Bitfinex, and whether coins at Coinbase Prime stay put or start flowing to trading venues.