U.S. Government Transfers Hundreds of Millions in Seized Crypto to Coinbase Prime

The United States government has moved seized cryptocurrency holdings, including roughly $250 million‑$300 million worth of Bitcoin and Ether, to the institutional custody platform Coinbase Prime. The transfers were made after assets were confiscated in various law‑enforcement actions and have reignited market speculation about a possible sale, with some analysts warning that a large‑scale liquidation could pressure prices.

The move follows earlier statements from the Trump administration that ordered the Treasury not to sell the assets, and it coincides with broader regulatory scrutiny of digital‑asset custody. Government officials have not disclosed any immediate plans to liquidate the holdings, but the deposits have drawn attention from traders monitoring institutional crypto flows.

The influx adds to Coinbase Prime’s role as a central hub for large‑scale crypto custody, potentially influencing market liquidity and prompting further discussions about how seized digital assets should be managed by federal agencies.