The US government has recently transferred $470 million in Bitcoin and Tether from confiscated assets to Coinbase Prime, as noted in a recent update on X monitoring these activities.
The inclusion of Tether in this transaction is particularly noteworthy, as previous government transfers did not feature USDT, despite the government holding large quantities of the stablecoin.
In July 2024, the US Marshals Service (USMS) designated Coinbase Prime as the institutional platform for managing custody and trading of seized digital currencies.
The Marshals Service is tasked with overseeing assets forfeited during federal criminal investigations.
Data from Arkham Intelligence has tracked several earlier transfers. In mid-July 2026, around $288-297 million in seized assets was deposited into Coinbase Prime.
This shipment predominantly consisted of Bitcoin, totaling between 3,800 and 3,941 BTC, and valued between $244-250 million at that time. Some of these wallets were linked to cases with Ryan Farace and Brian Krewson.
On October 7, 2026, approximately 833.6 BTC, valued at $71.6 million, was moved to Coinbase Prime wallets. Additionally, around 40,285 BNB, worth about $31.6 million, was transferred in the same timeframe. These movements were part of a larger $103 million asset transfer.
In March 2025, President Trump issued an executive order to establish a Strategic Bitcoin Reserve, mandating a no-sale policy for confiscated BTC.
This policy specifically pertains to Bitcoin. Since Tether is a stablecoin aimed at maintaining a consistent dollar value, its transfer raises different considerations compared to Bitcoin.
A move to a custodian is distinct from a sale; assets can be transferred for purposes such as consolidation, security, or administrative management without being listed for trade.
Estimates suggest that the US government holds between $20-28 billion in cryptocurrency, which includes approximately 324,000-325,000 BTC.
The Tether component warrants special attention. Liquidating or exchanging a dollar-pegged stablecoin wouldn’t exert the same price influence as selling Bitcoin, but it could indicate that the government is actively managing segments of its crypto holdings that fall outside the no-sale guidelines.
When considering the Bitcoin aspect, the critical inquiry is whether the reserve policy is applied consistently. Demonstrating any instances of seized BTC being sold could challenge the strength of the no-sale directive.
Since July 2024, Coinbase Prime has been at the forefront of one of the largest government cryptocurrency operations globally as the Marshals Service’s chosen custodian.