The Bitcoin and BNB transactions drew attention because Coinbase Prime provides institutional custody and trading services for digital assets handled by the U.S. Marshals Service (USMS). However, the blockchain movements do not establish that either cryptocurrency was sold. The destination is compatible with custody and asset-management activity as well as potential trading.
$103M in Seized Crypto Moves
According to blockchain intelligence data cited by on-chain trackers, the Bitcoin portion was worth approximately $71.56 million at the time of the transfers. The 833.599 BTC first moved through two unlabeled addresses before reaching addresses identified by Arkham as Coinbase Prime deposit addresses.
US government wallets transferred 834 BTC ($71.56M) and 40,285 BNB ($31.63M) to Coinbase Prime via multi-hop addresses on October 7, totaling approximately $103 million in seized assets. Source: @lookonchain via X
The BNB transfer involved about 40,285 tokens valued at roughly $31.63 million. Unlike the Bitcoin, the BNB did not move directly to a Coinbase Prime deposit address. It was transferred to an unlabeled wallet and then moved again through another address, with the final destination identified in on-chain reports as a wallet ending in 81E.
The combined value of the two transactions was approximately $103.2 million based on the reported prices at the time. The movements are part of the broader pool of cryptocurrency seized or forfeited through U.S. law enforcement actions.
Bitcoin Traced to Two Forfeiture Cases
On-chain data indicates that the 833.599 BTC came from two separate government-controlled pools. About 568.7 BTC was associated with the forfeiture case involving Sergei Potapenko and Ivan Turõgin, while approximately 264.9 BTC was linked to the 2016 Bitfinex hack case.
The Potapenko and Turõgin case concerns HashFlare, a cryptocurrency mining operation that prosecutors said falsely represented the amount of computing power available to customers. The two defendants pleaded guilty in February 2025 and agreed to forfeit more than $400 million in assets. The Justice Department said the forfeited assets would be made available through a process intended to compensate victims.
The Bitfinex-related Bitcoin has a separate history. In 2016, roughly 120,000 BTC was stolen from the exchange. U.S. authorities later seized approximately 95,000 BTC from wallets controlled by the defendants in the case and subsequently recovered additional funds.
The BNB involved in the October 7 movement was traced by on-chain data to assets seized in connection with Alameda Research, the trading firm associated with the FTX bankruptcy.
Why Coinbase Prime Matters
The transfer to Coinbase Prime is significant because the platform has an established relationship with the U.S. Marshals Service. In 2024, the USMS selected Coinbase Prime to provide custody and advanced trading services for large-cap digital assets handled through its federal asset-forfeiture operations.
Coinbase Prime transfers typically reflect custody management, not confirmed sales, though they often trigger market speculation. Source: Crypto Banter via X
That arrangement makes a Coinbase Prime deposit different from sending government-held cryptocurrency to an ordinary exchange wallet. Coinbase Prime can serve as a custody venue while also providing institutional trading infrastructure. As a result, an incoming government transfer alone cannot establish whether the assets are being prepared for sale, consolidated for custody, or moved for another administrative purpose.
The distinction is particularly important for Bitcoin because U.S. policy changed after the creation of the Strategic Bitcoin Reserve. A previous government transfer to Coinbase Prime in July involving roughly $288 million in seized BTC and ETH, also prompted questions about potential liquidation, although the transfer itself did not confirm a sale.
Strategic Bitcoin Reserve Limits BTC Sales
The White House established the Strategic Bitcoin Reserve through an executive order signed on March 6, 2025. The order states that the reserve would be capitalized with Bitcoin held by the Treasury that had been finally forfeited through criminal or civil asset-forfeiture proceedings, subject to specified legal requirements.
The order further states that government Bitcoin deposited into the Strategic Bitcoin Reserve “shall not be sold” and is to be maintained as a U.S. reserve asset. It also includes exceptions involving court orders, victim restitution, law enforcement operations, and certain statutory obligations.
That framework makes it important to distinguish between government-held Bitcoin and Bitcoin that has actually been deposited into the Strategic Bitcoin Reserve. Blockchain data can show where coins moved, but it does not by itself reveal the legal or accounting status assigned to those assets off-chain.
The executive order treats other forfeited digital assets differently. Non-Bitcoin assets are intended for the U.S. Digital Asset Stockpile, with the Treasury responsible for determining strategies for their responsible stewardship. The White House has said the stockpile may involve management of forfeited assets under applicable law.
Bitcoin Price Faces Near-Term Resistance
The government transfer comes as Bitcoin trades near $83,987, according to the latest TradingView technical data provided for this analysis. BTC is down approximately 1.83% in the latest session, while the broader technical rating remains neutral.
The indicator mix shows a divided market. Oscillators are tilted toward caution, with Momentum and MACD generating sell signals, while the Relative Strength Index at 56 remains in neutral territory. The moving-average structure is more constructive, with most medium- and long-term averages still generating buy signals.
Bitcoin (BTC) price chart. Source: Brave New Coin
The technical picture places the 81,950 area around the central pivot as an important level for Bitcoin. Holding above that zone would keep the broader structure supported, while the 84,000–85,700 region represents an immediate resistance cluster. Higher resistance levels appear around 86,700, 89,000–89,700, and 94,400.
The combination suggests that Bitcoin is currently caught between short-term weakness and a stronger higher-timeframe trend. The government transfer adds another headline for traders to monitor, but it does not independently establish a bearish market signal.
BNB Holds Above Longer-Term Support
BNB is trading in the approximate $768–$779 area, according to the latest market data provided for the analysis. Its short-term structure has cooled after a recent advance, with price hovering around shorter moving averages.
The broader BNB trend remains more constructive. Price is above the 50-day moving average near $732–$735 and substantially above the 200-day average near $640. RSI readings in the mid-50s also indicate neither an overbought nor oversold market.
BNB price chart. Source: Brave New Coin
The $780–$800 region remains an important resistance area. A sustained move above $800 could improve the short-term structure, while initial support sits around $755–$760. The $732–$735 region provides a more significant medium-term support zone.
The BNB transfer therefore comes at a time when the token is consolidating rather than displaying a clear technical breakdown. As with Bitcoin, the on-chain movement is a separate factor from the underlying chart structure.
No Sale Has Been Confirmed
The central question surrounding the latest transfers is whether the movement represents preparation for liquidation. Available blockchain data confirms the transfers and the eventual destination of the Bitcoin, but it does not show a completed market sale.
A Coinbase Prime deposit is also not sufficient evidence of liquidation because the platform was specifically selected by the U.S. Marshals Service to provide both custody and trading services for federally managed digital assets.
The distinction matters even more for Bitcoin subject to the Strategic Bitcoin Reserve framework. The March 2025 executive order established a policy against selling Bitcoin placed into the reserve, although legal exceptions remain for certain circumstances.
For now, the clearest conclusion from the October 7 activity is that U.S. government-linked wallets moved approximately $103 million in seized digital assets. About $71.56 million in BTC reached Coinbase Prime, while $31.63 million in BNB followed a separate multi-hop route. Any conclusion about an actual government sale would require additional evidence, such as an official disposition announcement or identifiable execution of a sale.
With Bitcoin trading near $84,000 and BNB near $770, traders are likely to continue watching both the government-linked wallets and subsequent Coinbase Prime movements. Further transfers, official statements, or changes in the destination of the assets could provide a clearer indication of how the seized cryptocurrencies are being managed.
