On-chain data shows the U.S. government routed roughly $288 million worth of seized bitcoin and ether through freshly created wallets before depositing the funds on Coinbase Prime, the exchange's institutional trading platform. The assets originated from two separate seizures tied to the Farace case and the defunct BTC-e exchange. The transfers have drawn attention because they appear to conflict with President Donald Trump's earlier directive establishing a strategic reserve that ordered no-sell treatment for government-held crypto holdings. Deposits to an institutional exchange platform can precede sales, though they do not necessarily confirm that liquidation is imminent, and the government has not publicly stated its intentions for the coins. The movement of such a large sum has prompted scrutiny over how seized digital assets are managed and whether policy commitments are being upheld.
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