The US government transferred $470 million in Bitfinex and Alameda crypto assets to Coinbase Prime addresses
As recorded by analysts of the on-chain platform Arkham Intelligence (arkhamintelligence.com), during the period from October 7 to October 8, 2026, a series of large transactions totaling over $470 million were carried out from cryptocurrency addresses controlled by the US government for a total amount of over $470 million (according to the maximum estimates of a number of trackers – up to $566 million). The confiscated digital assets were redirected to the deposit addresses of the institutional platform Coinbase Prime.
The large-scale movement of funds has traditionally caused a surge of anxiety among market participants, but experts draw attention to the specifics of the institutional agreement between the authorities and the Coinbase exchange.
What-assets-has-the-us-government-moved-and-where-these-coins-come-from?
According to blockchain monitoring data from Arkham and Lookonchain, the transactions combined funds seized by federal agencies as part of several high-profile lawsuits in past years:
- Composition of the transaction tranche: The main share of transfers was made up of native Bitcoin (BTC), wrapped Bitcoin (WBTC) and Tether stablecoins (USDT). A day earlier, on October 7, the authorities also moved test tranches into BTC and BNB worth about $103 million.
- Sources of confiscation: The transferred assets are tied to confiscations in the case of the historical hack of the Bitfinex exchange (2016), the liquidation estate of the trading company Alameda Research (a subsidiary of the bankrupt FTX exchange), as well as the trial of the creators of the fraudulent service HashFlare (the case of Potapenko and Turygin).
- Role of the Coinbase Prime Platform: Beginning in 2024, Coinbase Prime officially serves as the exclusive custodian of the U.S. Marshals Service for the storage, management and disposal of digital assets seized by federal agencies.
Is-the-market-threatening-a-wave-of-sales-and-how-is-this-connected-with-Bitcoin-reserve?
Crypto analysts urge traders not to panic, emphasizing the fundamental difference between a deposit to a custodial service and the actual execution of a market order:
- Custodial reorganization without a market dump: Under U.S. regulations. Marshals Service states that Coinbase Prime is used not only as a broker for settlements, but also as a secure cold storage facility (Prime Vault). The movement of coins is often due to the consolidation of disparate addresses or a planned audit of a government balance sheet.
- Effect of the Presidential Executive Order on the Strategic Reserve: Market participants would like to remind you that, in accordance with the provisions of the Executive Order establishing the Strategic Bitcoin Reserve, which entered into force in March 2025, bitcoins that are permanently confiscated by federal authorities are prohibited from being released into the open spot market and must be transferred to the long-term sovereign reserve of the US Treasury.
- Spot market situation: Bitcoin is currently consolidating around $82,700, holding the key $81,300-$82,000 support zone, while institutional inflows into spot ETFs have temporarily slowed as the 10-year US Treasury yield rises to 5.27%.
The crypto market isn't just about numbers—it's a complex ecosystem where politics, technology, and economics intertwine. In my news coverage, I strive not merely to recount events, but to analyze their real impact on the market. My goal is to make cryptocurrency news clear, accessible, and objective.
