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

The US government has recently transferred $470 million in seized Bitcoin and Tether to Coinbase Prime, marking a significant move in its management of digital assets. This transfer, noted on X, is particularly notable for including Tether (USDT), which has not been part of previous government transfers despite substantial holdings.

Coinbase Prime was selected by the US Marshals Service (USMS) in July 2024 to handle custody and trading of seized digital assets. The USMS is responsible for managing assets forfeited in federal criminal cases. Prior to this, on-chain data from Arkham Intelligence tracked earlier shipments, including a mid-July 2026 transfer of approximately $288-297 million, predominantly in Bitcoin.

In addition to the recent transfer, on October 7, 2026, the government moved roughly 833.6 BTC valued at $71.6 million along with 40,285 BNB worth about $31.6 million, as part of a larger $103 million asset shift.

In March 2025, an executive order by President Trump established a Strategic Bitcoin Reserve, implementing a no-sale policy specifically for seized Bitcoin. However, the inclusion of Tether in this latest transfer raises questions about the government's management of its crypto portfolio, especially since moving Tether does not carry the same market implications as selling Bitcoin.

With estimates of US government-held cryptocurrency ranging between $20-28 billion, including around 324,000-325,000 BTC, the implications of these transfers could be significant. The management of these assets, particularly in light of the no-sale policy, will be closely watched by market participants.