The United States government has moved a total of nearly 4,000 Bitcoin—worth approximately $192 million—to Coinbase Prime in a single day, reactivating long-dormant wallets and sparking debate over potential liquidation. The transfers were first flagged by blockchain analytics firm Lookonchain, which noticed a previously inactive address (bc1qhr) moving 140.214 BTC (~$8.79 million) after four years with no outgoing activity. Shortly after, Galaxy Research reported a much larger transfer of 2,874.9 BTC (~$183.28 million) across Bitcoin blocks 957893 and 957894, bringing the day’s total to almost 4,000 BTC.
The choice of Coinbase Prime, an institutional-grade platform designed for over-the-counter trading, custody, and financing, suggests the government may be consolidating holdings or managing seized assets rather than executing an immediate market sale. However, the fact that the coins trace back to multiple unrelated cases—including the BTC‑e exchange seizure—is unusual, as authorities rarely move such distinct batches simultaneously.
The transactions come against the backdrop of a March 2025 executive order that created a Strategic Bitcoin Reserve and directed the Treasury Department to retain confiscated Bitcoin instead of selling it. Treasury Secretary Scott Bessent publicly affirmed that the government would not purchase Bitcoin for the reserve but would hold seized assets. The latest Coinbase Prime deposits have therefore raised questions among investors, with some fearing that the government may be preparing for a sale. On-chain observers and market participants are now closely watching for any follow-up moves that could signal a change in policy, even as the relatively modest size of the transfers compared to the government’s estimated 200,000+ BTC holdings tempers immediate concern.
