US Government Moves $470 Million in Seized Bitcoin and Tether to Coinbase Prime

The U.S. government has transferred approximately $470 million in seized Bitcoin and Tether to Coinbase Prime, the institutional platform designated by the U.S. Marshals Service (USMS) for handling such assets. This move is notable for the inclusion of Tether, a stablecoin, which has not been a prominent feature in previous reported government transfers of seized cryptocurrency.

Coinbase Prime was selected by the USMS in July 2024 to manage the custody and trading of digital assets seized in federal criminal cases. The USMS is responsible for overseeing the management of these forfeited assets. On-chain data, tracked by Arkham Intelligence, has previously shown significant shipments of seized crypto assets to Coinbase Prime.

In mid-July 2026, for instance, an estimated $288 million to $297 million in seized assets, primarily Bitcoin, were moved to Coinbase Prime. More recently, on October 7, 2026, a larger asset shift of approximately $103 million included about 833.6 Bitcoin, valued at $71.6 million, and 40,285 BNB, worth around $31.6 million, which also landed on Coinbase Prime addresses.

The current transfer’s specific date is not explicitly stated but is implied to be recent, with activity tracked on platforms like X. The inclusion of Tether in this $470 million transfer is a distinguishing factor, as earlier reported government transfers of seized crypto did not feature USDT, despite the government holding significant amounts of the stablecoin.

This development occurs within the context of a broader U.S. government digital asset strategy. In March 2025, President Trump signed an executive order establishing a Strategic Bitcoin Reserve, which includes a no-sale policy for seized Bitcoin. While this policy specifically addresses Bitcoin, the movement of Tether, a stablecoin pegged to the U.S. dollar, raises different considerations. Unlike Bitcoin, selling or redeeming Tether would not typically create price pressure on the market, but it signals active management of crypto assets outside the direct protection of the Bitcoin reserve’s no-sale policy.

Transfers to a custodian like Coinbase Prime are administrative actions and do not inherently constitute a sale. Coins can be moved for consolidation, safekeeping, or administrative handling without being placed on an exchange for sale. However, the handling of seized Bitcoin may be subject to scrutiny to determine if the government’s no-sale policy is being consistently applied.

Estimates suggest the U.S. government holds a substantial amount of cryptocurrency, potentially between $20 billion and $28 billion, including an estimated 324,000 to 325,000 Bitcoin. The exact reasons for this specific $470 million transfer, beyond administrative handling, remain uncertain, as do the specific cases from which these assets were seized, although previous transfers have been linked to individuals like Ryan Farace and Brian Krewson.

The government’s active management of its seized crypto portfolio, particularly the inclusion of stablecoins like Tether alongside Bitcoin, highlights the evolving nature of its digital asset strategy and the ongoing questions surrounding adherence to its stated policies, such as the Strategic Bitcoin Reserve.

Why This Matters

The materials describe a narrow update: The US government moved $470 million worth of seized Bitcoin and Tether to Coinbase Prime, the platform selected by the US Marshals Service for handling seized digital assets. The exact date of the $470 million transfer to Coinbase Prime.

Broader Context

Source materials place the factual news in this context: The US government has moved $470 million in Bitcoin and Tether from seized funds to Coinbase Prime, according to a post on X tracking the activity.