Surprise Move Despite Trump’s ‘Don’t Sell’ Order: US Government Sends $288 Million in Crypto to Exchange
Despite Donald Trump’s Strategic Bitcoin Reserve executive order mandating that seized assets not be sold, the US government transferred approximately $288 million worth of Bitcoin and Ethereum to the Coinbase Prime platform.
US government-owned wallets moved seized crypto assets to an exchange over a roughly half-day period on Monday. On-chain data provided by Arkham Intelligence revealed that the government moved its Bitcoin (BTC) and Ethereum (ETH) holdings to Coinbase Prime accounts. This move stands in clear contradiction to President Donald Trump’s order issued in March 2025, which called for seized assets to be preserved as a national reserve.
Looking at the details of the transfers, approximately 2,875 BTC worth about $178 million was transferred from a wallet linked to Ryan Farace, known from the “xanaxman” case. Additionally, 925.512 BTC worth $57 million was sent to the exchange from another wallet associated with the defunct BTC-e exchange using the same method. On the Ethereum side, 30,007 ETH worth $53.09 million was directly transferred from a wallet linked to Brian Krewson, whose name appeared in a money laundering case.
US Government’s Crypto Move and Anticipation of Selling Pressure
The government’s transfer of these assets to an exchange triggered expectations of potential selling pressure in the cryptocurrency market. While large amounts of assets are typically kept in cold wallets for security reasons, transfers to exchanges are often interpreted as preparation for a sale. However, the fact that the Coinbase Prime platform is used not only for sales but also for institutional custody and financing services means this transaction is not a guaranteed sale.
Nonetheless, this move following Trump’s order not to sell seized assets is being closely monitored by market participants. On-chain data indicates a technical preparation, showing that Bitcoin transfers were first made to newly created intermediary wallets and then to the exchange. While the government still holds a massive crypto portfolio worth $20.65 billion, how these latest transfers will affect the strategic reserve plan remains uncertain.