U.S. government-labeled wallets transferred 3,800.5 BTC and 30,000 ETH into Coinbase Prime deposit addresses during a seven-hour window, moving about $288.33 million in seized cryptocurrency.
The Bitcoin and Ether deposits were flagged by blockchain security firm PeckShield. The BTC was valued at roughly $239 million during the transfers, while the ETH was worth about $49 million.
The assets arrived through multiple transactions rather than a single wallet movement. Coinbase Prime provides institutional custody, trading and execution services, but the deposits do not establish that either asset was sold.
The U.S. Marshals Service selected Coinbase Prime in 2024 to custody and trade large-cap digital assets held through federal asset-forfeiture programs.
Ether Came From New Jersey Narcotics Case
The 30,000 ETH originated from assets seized in a New Jersey narcotics case involving Thomas William Dunbar and brothers James and Christopher Castelluzzo.
The defendants used Bitcoin proceeds from darknet drug sales to acquire the ETH during Ethereum’s 2014 initial coin offering. Brian Krewson later controlled the wallet before transferring the assets to government addresses during a 2022 search.
Federal prosecutors sought forfeiture of the 30,000 ETH and related assets in November 2023. The crypto was valued at approximately $54 million when the civil action was filed.
The Bitcoin batch included assets tied to separate federal cases, including holdings associated with the defunct BTC-e exchange and darknet drug trafficker Ryan Farace. Prosecutors previously sought the forfeiture of 4,000 BTC connected to Farace’s illegal alprazolam sales.
Transfer Tests Federal Reserve Policy
The movement follows smaller U.S. government deposits into Coinbase Prime during 2026. A seized-funds wallet sent 3.233 ETH to the platform in May, while an FTX and Alameda forfeiture wallet later moved 98,590 LINK into Coinbase Prime.
President Donald Trump’s Strategic Bitcoin Reserve order requires finally forfeited BTC transferred into the reserve to be held rather than sold. Ether and other assets fall under the separate U.S. Digital Asset Stockpile, where the Treasury secretary can determine disposal and stewardship strategies.
The order permits government digital assets to be released for victim restitution, law-enforcement operations, statutory forfeiture obligations or execution of a court order.
