US government moves 9,261 seized bitcoin worth $770 million to Coinbase Prime
On October 6 and 7, 2026, the US government moved about 9,261 BTC, roughly $770 million, to Coinbase Prime, according to analysts at Galaxy Research. About half of the coins are tied to the recovery of funds from the Bitfinex hack, part comes from known Binance-related seizures, and 2,456 BTC came from wallets nobody had linked to the government before. Here is what we know about the transfer and why it does not yet mean a sale.
What happened
Galaxy Research tracks wallets linked to the US government, and on October 8 it published a breakdown of the latest transfers. According to the firm, everything went to a single address on Coinbase Prime where the government keeps seized coins.
- October 6: about 834 BTC, roughly $71 million. This was the first movement of government bitcoin since August 26.
- October 7: about 8,428 BTC. Galaxy ranks it as the ninth-largest outflow day from government wallets since 2013 and the largest since December 2, 2024.
- Total: about 9,261 BTC, roughly $770 million at the prices of those days.
The US Marshals Service and the Department of Justice had not commented when the reports came out.
Where the bitcoin came from
According to Galaxy Research, the coins came from three sources:
- The Bitfinex hack. Almost half of the transfer is tied to bitcoin recovered from the hackers who breached the Bitfinex exchange in 2016.
- The Binance case. Another part comes from previously known Binance-related seizures.
- Unknown wallets. 2,456 BTC came from addresses that had never been linked to the government. Galaxy treats them as government coins only because they went to the same seizure address on Coinbase Prime, and says they may be new law enforcement seizures. This has not been independently confirmed.
Mystery deposits to this address are nothing new. Since December 2025 it has received 11,567 BTC: 6,406 BTC from known government wallets and about 5,160 BTC from unlabeled senders. Both groups followed similar patterns, with the first such transfers going back to April.
Why Coinbase Prime
Coinbase Prime is Coinbase's institutional custody and trading arm. Since 2024 it has held seized digital assets for the US Marshals Service, the agency that manages forfeited property. So for the government, a transfer to Coinbase Prime is routine: the coins are moving to their custodian.
This has happened before. In July, the authorities moved about $297 million in BTC and ETH from other seizures to Coinbase Prime.
Will the coins be sold
A transfer to a trading platform does not by itself mean a sale. All three outlets that covered the transfer stress that it does not confirm any liquidation.
There is a legal argument too. President Trump's March 2025 executive order created the US Strategic Bitcoin Reserve: seized bitcoin goes into it and is not sold. Selling these 9,261 BTC would conflict with the order. Custody is therefore more likely than a market sale, but there is no definite answer while the agencies stay silent.
For anyone who keeps coins on a trading platform, there is a lesson here: bitcoin on a platform is yours only as far as its operator allows. How such a balance differs from your own wallet is covered in our article custodial vs non-custodial wallet: what is the difference.
How much bitcoin the US government holds
By Galaxy's count, government wallets now hold about 319,086 BTC, down from a peak of 352,587 BTC on August 13, 2024. But 71% of the current balance is not settled government property:
- about 94,643 BTC in the Bitfinex case. In January 2025 a court approved returning them to the exchange, but the main wallet had not moved as of Galaxy's analysis;
- 127,271 BTC in the Lubian and Chen Zhi case. The Justice Department filed a civil forfeiture complaint in October 2025.
In total, Galaxy counted 6,134 transactions: government wallets received 555,260 BTC and sent 236,173 BTC, excluding transfers between their own addresses. US marshals last auctioned bitcoin in 2013–2015, after the Silk Road case. Since 2020, seizures have far outpaced sales.
The news hit the market at a nervous moment: on October 8 bitcoin traded around $82,000. Traders often read large transfers from government wallets as a sign of coming sales, even though this time the executive order points the other way.
If you would rather sit out the volatility, you can convert bitcoin to USDT on the TRON network and wait out the swings in a dollar coin.
How to exchange bitcoin without registration or exchange custody
The Coinbase Prime story shows how custodial storage works: the coins sit with a company, and whoever controls the account controls them. If you just need to swap coins, you do not have to keep them on someone else's platform. VertEXchange works without an account, email or phone number: you pick a pair, paste your own wallet address and see the rate and the final amount before you send anything.
- The coins go straight to your address, and the service does not hold them.
- The fixed rate holds for about 15 minutes, so the amount will not drift while your transfer confirms.
- If the exchange does not go through, the coins return to your refund address.
- The personal fields of the transaction are deleted 24 hours after it completes, and your exchange history stays only in your browser.
- Support chat is on every page, and questions are handled using your exchange code.
Once the market calms down, you can buy bitcoin with USDT TRC20 and receive it directly in your own wallet. And if privacy matters to you, you can exchange BTC to Monero without registration.
FAQ
How much bitcoin did the US government move to Coinbase Prime?
About 9,261 BTC on October 6 and 7, 2026, roughly $770 million. About 834 BTC moved on the first day and about 8,428 BTC on the second.
Is the US government selling bitcoin?
There is no confirmation of a sale. Coinbase Prime has held seized assets for the US Marshals Service since 2024, and the March 2025 executive order says seized bitcoin goes into the Strategic Bitcoin Reserve rather than being sold.
Where did this bitcoin come from?
Almost half is tied to the recovery of funds from the 2016 Bitfinex hack, and part comes from known Binance-related seizures. Another 2,456 BTC came from wallets not previously linked to the government.
What are the 2,456 BTC from unknown wallets?
Galaxy Research says they may be new seizures, since the coins went to the same seizure address on Coinbase Prime. This has not been independently confirmed, and the agencies have not commented.
What is the US Strategic Bitcoin Reserve?
A bitcoin stockpile created by President Trump's executive order in March 2025. Seized bitcoin goes into it, and the order says it is not to be sold.
How much bitcoin does the US government hold?
By Galaxy's count, about 319,086 BTC. Most of it is coins from the Bitfinex and Lubian cases that have not yet become settled government property.
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