The U.S. government moved nearly 4,000 bitcoin worth roughly $250 million into Coinbase Prime on July 13, according to on-chain data. Arkham Intelligence traced the largest transfers to coins seized in the Ryan Farace and BTC-e cases, though the movement alone does not prove a sale.
U.S. government-linked wallets sent nearly 4,000 bitcoin worth about $250 million to Coinbase Prime in several transactions on July 13, Arkham Intelligence data showed. Coinbase Prime is the firm's crypto brokerage for institutional investors, so the transfer placed federally controlled coins inside infrastructure that supports both custody and trading. Galaxy Digital head of research Alex Thorn flagged the activity on X after it surfaced in Arkham's data.
Which seized coins moved
The largest batch was approximately 2,875 BTC that Arkham labeled "Ryan Farace Seized Funds," followed by about 926 BTC tagged "BTC-e Seized Funds." A further transfer of roughly 140 BTC brought the day's observed total to around 3,941 BTC, with Arkham assigning the descriptions through blockchain tracing and public records.
The Farace figure closely matches the 2,874.90419597 BTC federal agents seized in 2021. Prosecutors said Ryan Farace, known as "Xanaxman," and his father attempted to launder bitcoin derived from drug trafficking. The BTC-e exchange operated from 2011 until law enforcement closed it in 2017, and the Justice Department said the platform processed more than $9 billion in transactions and handled proceeds linked to hacking, ransomware, identity theft, narcotics trafficking, and other crimes.
A sale already authorized on paper
A federal forfeiture notice published in January 2024 announced the government's intention to dispose of approximately 2,933.64 BTC connected to the Farace proceedings. That notice indicates the legal process to dispose of the assets had begun, which strengthens the possibility that the July 13 transfer relates to an authorized sale.
However, legal authority to dispose of property and a transfer into Coinbase Prime do not establish that a market sale occurred.
Why the destination is not proof
Coinbase announced in July 2024 that the U.S. Marshals Service selected Coinbase Prime to provide custody and trading services for its large-cap digital assets, which makes the platform a logical destination for coins the government plans to hold or dispose of. Confirmation of a sale would require an agency announcement, a disposal record, or evidence that trades were executed. Arkham attributed 328,225 BTC, worth more than $20 billion, to U.S. government-linked wallets at the time of writing.
Source: Bitcoin.com News
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