US Government Holds $25.5B Bitcoin Sending $1B to Coinbase Prime

Arkham also flagged Washington’s latest move. The government deposited about $1 billion of Bitcoin into Coinbase Prime four days earlier. As a result, the transfer reignited a familiar question, and that question is simple: is the US about to sell?

Inside the US Government Crypto Holdings

Arkham tracks the government’s wallets through known seizures and on-chain clustering. Its US Government entity page showed roughly 306,795 BTC across about 622 addresses. At recent prices, that stack is worth more than $25 billion.

By that measure, the US government crypto holdings now rank among the largest known for any state. Meanwhile, the rest of the portfolio stays small by comparison.

Arkham listed about 17,400 ETH, worth near $43 million. On top of that, it showed roughly 22,000 WBNB and stablecoin balances in the tens of millions.

The $1 Billion Bitcoin Move to Coinbase Prime

The headline deposit landed on October 8 at about 13:33 UTC. In a single transaction, a wallet moved 12,267 BTC, worth roughly $1.02 billion. According to Arkham, the coins came from an address tied to the 2016 Bitfinex hack recovery.

That transfer was only part of a larger run. Trackers including Lookonchain and Galaxy Research counted about 17,733 BTC, near $1.48 billion, plus 750 WBTC over roughly three days.

On-chain records tie the big move to transaction 9194d9de and a Bitfinex-recovery address. Notably, the coins passed through a staging wallet before they reached the exchange.

Earlier days in the window were smaller. Galaxy counted about 9,261 BTC, near $770 million, moving on October 6 and 7, plus a batch of roughly 833 BTC.

Where the Seized Bitcoin Came From

Most of the US government crypto holdings trace back to criminal forfeitures. The two biggest sources are the Silk Road seizures and the 2016 Bitfinex hack.

The Silk Road cases produced tens of thousands of BTC between 2020 and 2022. That haul included the recovery tied to James Zhong, sometimes called Individual X.

Separately, agents clawed back more than 94,000 BTC from the Bitfinex hack in 2022. Those coins came from Ilya Lichtenstein and Heather Morgan, and much of that recovery still carries restitution claims.

Smaller cases added to the pile too. Seizures linked to BTC-e, FTX, and Alameda also feed the tracked wallets, according to Arkham’s research notes.

Why Coinbase Prime, Not a Public Auction

For years, the US Marshals Service auctioned seized Bitcoin in public sales. That practice changed in 2024, when the agency picked Coinbase Prime to custody and trade large-cap seized assets.

So a deposit to Coinbase Prime does not confirm a sale. In practice, it signals a move into institutional custody. From there, Washington could hold the coins, shift them internally, or prepare for a court-ordered step later.

Importantly, no official statement from the DOJ, the Marshals Service, or the Treasury has confirmed the purpose of these deposits.

Does the Strategic Bitcoin Reserve Block a Sale?

In March 2025, Executive Order 14233 created the Strategic Bitcoin Reserve. According to the White House fact sheet, the government will not sell Bitcoin deposited into the reserve.

A separate Digital Asset Stockpile holds non-Bitcoin assets, and those can be sold. Still, a key caveat applies to the Bitfinex coins in particular.

Much of the Bitfinex recovery may still face restitution claims. As a result, those coins may not yet count as settled government property eligible for the no-sale reserve.

Treasury Secretary Scott Bessent framed the policy in January 2026. He said the government plans to add seized Bitcoin to its reserve after the damages are done, according to Bitcoin Magazine and The Block.

Market Reaction and the Price Dip

Bitcoin traded near $86,000 in early October. By October 8, it slipped to around $80,300 before it closed near $81,700.

Meanwhile, the three-day transfer window lined up with a roughly 6.9% drop and about $1.15 billion in long liquidations. By October 13, prices had steadied near $82,000 to $83,500.

Even so, no single deposit caused an isolated crash, according to tracked market data. ETF outflows and broader selling also weighed on prices during the same stretch.

How the Crypto Community Reacted

On X, the response split between calm and caution. Some users stressed that moving coins is not selling them, and they pointed to Coinbase Prime’s role as the Marshals’ custodian.

Others flagged the size of the flows and the price dip as a possible overhang. A few questioned whether the Bitfinex coins can enter the no-sale reserve while claims stay open.

So far, the dominant tone leans skeptical rather than fearful. Reddit threads on this specific event stayed sparse through October 13.

What the US Government Crypto Holdings Signal Next

For now, the on-chain picture points to consolidation rather than confirmed selling. Analysts will watch whether coins later leave Coinbase Prime for trading venues, because that would hint at a sale.

Still, Arkham labelling stays analytical, not an official confirmation. For that reason, trackers disagree on the exact totals. Galaxy counted about 319,000 BTC in some snapshots, while CryptoQuant tracked a smaller subset.

Ultimately, the next on-chain move, or an official statement, should clarify intent. This article is not financial advice, so readers should do their own research before making any investment decision.