U.S.-Linked Wallets Move More Than $100 Million in Crypto
Wallets labeled as being connected to the U.S. government transferred more than $100 million worth of Bitcoin (BTC) and BNB on Tuesday, putting renewed attention on the government's management of seized cryptocurrency.
The transactions involved 833.599 BTC, valued at approximately $71.6 million at the time of the transfer, and around 40,285 BNB, worth about $31.63 million. The combined value of the movements was therefore more than $103 million.
The transactions were tracked through Arkham's blockchain intelligence platform, which identifies and monitors cryptocurrency wallets and on-chain activity. The transfers alone do not establish that the government sold any of the assets.
Bitcoin Was Routed Toward Coinbase Prime Addresses
The Bitcoin transfers occurred first, with the government-linked wallet sending 833.599 BTC to two addresses that are not labeled by Arkham. Within several hours, both receiving addresses transferred the Bitcoin onward to addresses identified by Arkham as Coinbase Prime deposit addresses.
Coinbase Prime provides institutional cryptocurrency trading, custody, execution and other services. Its platform is designed to aggregate liquidity and facilitate large transactions across multiple venues.
The movement to Coinbase Prime-associated addresses can naturally attract attention because assets sent to exchange-related infrastructure can potentially be positioned for trading or other institutional activity. However, an on-chain transfer by itself does not prove that a sale occurred. No confirmed sale was included in the transaction data described in the report.
BTC Came From Previously Seized Government Assets
The transferred Bitcoin was associated with two separate pools of assets identified by Arkham.
Approximately 568.7 BTC came from wallets labeled as Potapenko/Turogin forfeited funds. Sergei Potapenko and Ivan Turogin were involved in the HashFlare cryptocurrency mining fraud case, in which the U.S. government pursued the forfeiture of assets connected to the scheme. The U.S. Department of Justice case records provide details on the case and subsequent forfeiture process.
The remaining 264.9 BTC was associated with cryptocurrency seized in the Bitfinex hack case. The Justice Department previously announced the seizure of Bitcoin connected to the 2016 Bitfinex hack, one of the largest cryptocurrency seizures conducted by U.S. law enforcement. U.S. Department of Justice Bitfinex case information
These origins are important because the Bitcoin was not acquired through ordinary government market purchases. Instead, the assets were connected to law-enforcement seizures and forfeiture proceedings.
40,285 BNB Also Changed Wallets
A separate wallet labeled as connected to the U.S. government transferred approximately 40,285 BNB, worth around $31.63 million when the transaction occurred.
The BNB first moved to the unlabeled address:
0x7F68F63fB3A9CCCf352409603421E0A574FbAD90
That address subsequently sent the entire amount to another unlabeled wallet:
0x6fB3Fe7b7E78AbB84CE007cBC7412C850B15A579
The BNB was identified as assets seized from Alameda Research. Unlike the Bitcoin transfers, the BNB was not reported as moving directly to a wallet labeled as a Coinbase Prime deposit address.
BNB is the native asset of the broader BNB Chain ecosystem, where it is used for transaction fees and a range of blockchain applications.
Why the Transfers Do Not Automatically Mean a Sale
Large movements from government-controlled cryptocurrency wallets often generate speculation that the assets are about to be sold. That interpretation, however, cannot be established solely from blockchain transfers.
A wallet-to-wallet transaction can serve several purposes, including custody changes, asset management, preparation for liquidation, or transfers involving institutional service providers. Even when funds move to an exchange-associated address, the blockchain record does not necessarily show what ultimately happened to the assets.
The distinction is particularly important for U.S. government-held Bitcoin following the establishment of the Strategic Bitcoin Reserve in March 2025. The White House executive order establishing the Strategic Bitcoin Reserve states that government BTC that meets the specified criteria is to be held in the reserve and not sold, subject to the exceptions outlined in the order.
The order also established a separate United States Digital Asset Stockpile for qualifying government-held digital assets other than Bitcoin.
Government Crypto Holdings Remain Under Scrutiny
The United States still holds a substantial cryptocurrency portfolio consisting of assets obtained through enforcement actions. The holdings have become an increasingly important part of the government's digital-asset strategy, particularly following the creation of the Strategic Bitcoin Reserve.
According to the figures associated with the latest wallet activity, the government holds approximately $27.5 billion in cryptocurrency, with the assets originating from enforcement actions. The government has also not used taxpayer money to make new cryptocurrency purchases, according to the information provided.
The latest transfers therefore highlight the difference between moving seized assets and selling them. While the destination of some of the Bitcoin has prompted questions about whether the assets could eventually enter the market, the transactions themselves do not confirm that an actual sale took place.
What Happens Next?
The key issue for the market will be whether the transferred BTC and BNB are subsequently sold, moved again, or returned to another government-controlled custody arrangement.
For now, the blockchain movements show that more than $100 million in BTC and BNB changed hands across government-linked wallets and other addresses. They do not, by themselves, establish that the U.S. government has liquidated the assets.
The distinction matters because government cryptocurrency movements can have different purposes, while the Strategic Bitcoin Reserve framework adds another layer to how forfeited Bitcoin is expected to be managed. Until a confirmed transaction or official announcement establishes a sale, the latest transfers should be treated as asset movements rather than confirmed liquidations.
