US Moves $470M in Seized Crypto to Coinbase Prime, Incl. 3,974 BTC
US government wallets sent about $470 million in BTC, WBTC and USDT tied to the Bitfinex and FTX cases to Coinbase Prime on Oct. 7. No purpose was disclosed.
Wallets that Arkham Intelligence attributes to the US government moved roughly $470 million in bitcoin, wrapped bitcoin (WBTC) and Tether's USDT on Oct. 7 to what appear to be Coinbase Prime deposit addresses. The coins come from two landmark criminal cases — the 2016 Bitfinex hack and the collapse of FTX and Alameda Research. Neither the Treasury nor the Justice Department has explained the purpose of the transfers.
The details
According to Arkham data cited by Crypto Times, the bulk of the batch was 3,974 BTC (about $330 million) seized in the Bitfinex hack case. Another ~658 BTC (about $54.6 million), 750 WBTC (about $62.3 million) and 24.9 million USDT came from FTX- and Alameda-related forfeitures. A further 94.1 million USDT followed later in the day, bringing the total moved on Oct. 7 to more than $565 million by the outlet's count. CryptoSlate first flagged the $470 million transfer, also citing Arkham.
Coinbase Prime is the institutional custody and trading desk the US Marshals Service uses for seized digital assets, so a deposit there does not by itself mean a sale. It could reflect a custody reshuffle, preparation for victim restitution or compliance with a court order. CoinGape notes that no official statement has confirmed what the funds are for.
The policy backdrop matters. The March 2025 executive order creating the Strategic Bitcoin Reserve bars the sale of bitcoin deposited into it, but carves out exceptions, including returning funds to crime victims and complying with court orders. The Bitfinex coins sit in a case with an identified victim. Even after the moves, Arkham showed government-linked addresses holding about 319,000 BTC as of 19:15 UTC.
What it means for the market
Sale or not, the market tends to react nervously to these moves: some 4,600 BTC plus 750 WBTC of potential supply left long-dormant wallets just as bitcoin was already weakening. Our data show BTC at around $83,380, down 2.5% over 24 hours, with a daily low of $82,787 — below the October low we covered yesterday.
The next signal to watch is an official explanation from the Justice Department or the Marshals Service. Follow price action and market sentiment in our daily overview and on the bitcoin page.
