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The US government has transferred approximately $470 million in seized Bitcoin and Tether to Coinbase Prime, the institutional platform selected by the US Marshals Service (USMS) for managing digital assets. This transfer, which occurred on October 7, 2026, includes around 833.6 BTC valued at $71.6 million and approximately 40,285 BNB worth about $31.6 million, as part of a larger asset shift totaling $103 million.
This move is notable due to the inclusion of Tether, a stablecoin, which has not been part of previous government transfers. The USMS, responsible for handling assets forfeited in federal criminal cases, has been utilizing Coinbase Prime since July 2024 for custody and trading of seized cryptocurrencies. Earlier this year, the agency transferred between $288 million and $297 million in seized assets to the platform, primarily consisting of Bitcoin.
In March 2025, an executive order signed by President Trump established a Strategic Bitcoin Reserve, instituting a no-sale policy for seized Bitcoin. While this policy specifically applies to Bitcoin, the movement of Tether raises questions about the government's management of its crypto portfolio. The total estimated value of crypto held by the US government ranges between $20 billion and $28 billion, including around 324,000 to 325,000 BTC.
The implications of this transfer for the market are significant. While selling or redeeming Tether would not exert the same price pressure as selling Bitcoin, it indicates active management of assets outside the no-sale policy. Observers are keen to see whether the no-sale policy for Bitcoin will be upheld, as any evidence of actual sales could challenge the enforcement of this directive.
Source: KLEA News