Wallets believed to be linked to the U.S. government transferred nearly $289 million in Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) to Coinbase, on-chain analytics platform Arkham reported on Monday.

Seized Bitcoin, Ethereum Moves

Arkham’s data on X revealed a transfer of 2,875 BTC, worth nearly $178 million, to an unidentified address, which later forwarded the funds to a Coinbase Prime deposit address. The funds were seized from Ryan Farace, a convicted dark web drug trafficker who used Bitcoin in his criminal operations.

In a similar development, an address containing Bitcoin seized from the defunct cryptocurrency exchange BTC-e moved $57.27 million in BTC.

Another wallet linked to Brian Krewson, the Oracle employee convicted of laundering millions in cryptocurrency for convicted drug traffickers, directly moved 30,000 ETH, worth $53 million, to Coinbase Prime.

“Will they be selling it all?” Arkham sparked intrigue, though no conclusive evidence supported it at the time of writing.

Big Sell Pressure Incoming?

Movements from wallets tied to the government are not unusual. In the past, the Federal government has sold or auctioned cryptocurrencies it acquired through law enforcement actions, criminal probes, and asset seizures.

A notable example is billionaire Tim Draper, who bought nearly 30,000 BTC seized from the Silk Road darknet market by the U.S. Marshals Service, a Department of Justice agency, in 2014.

The USMS didn’t immediately return Benzinga’s request for confirmation on the latest transfer.

Read Also: Peter Schiff Regrets Not Buying Bitcoin When He First Learned About It, But There's 'Not a Chance' He'll Buy It Now — Not Even at $20,000

US Government: A BTC HODLer?

The U.S. government holds 324,552 BTC, worth approximately $20.27 billion, and 28,394 ETH valued at $50.51 million, according to Arkham data.

Last year, President Donald Trump’s executive order established a Strategic Bitcoin Reserve funded by forfeited assets, with a provision to develop budget-neutral strategies for acquiring additional BTC.

Treasury Secretary Scott Bessent said last year that the government would stop selling the confiscated Bitcoin.

Price Action: At the time of writing, BTC was exchanging hands at $62,486.46, down 0.54% in the last 24 hours, according to data from Benzinga Pro.

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