The U.S. government transferred nearly $297 million in seized Bitcoin and Ether to Coinbase Prime on Monday, according to blockchain data. 

The move renewed questions about how federal agencies plan to handle crypto covered by President Donald Trump’s reserve policy.

The transfers included about 3,940 BTC worth roughly $244 million and around 30,000 ETH valued near $53 million at the time. Arkham’s government wallet tracker recorded the movements, although changing market prices can alter their dollar value.

Seized Bitcoin and Ether reach Coinbase Prime

Galaxy Research head Alex Thorn linked the Bitcoin to seizures involving Ryan Farace, known online as “Xanaxman,” and the closed BTC-e exchange.

“These coin movements were comprised of coins seized from Ryan Farace and defunct crypto exchange BTC-e,” Thorn said.

these coin movements were comprised of coins seized from ryan farace (“xanaxman”) and defunct crypto exchange btc-e

— Alex Thorn (@intangiblecoins) July 13, 2026

The Ether came from wallets tied to Brian Krewson, an Oracle employee connected to a federal case involving crypto storage and money laundering. The transfers brought assets from several enforcement cases into an institutional platform used by government agencies and large investors.

Transfer does not confirm a government sale

A deposit to Coinbase Prime can allow trading, but it does not prove that officials plan to sell the assets. Coinbase Prime provides custody, execution, financing and staking services. Federal agencies may use the platform to consolidate wallets or move assets into managed custody.

The U.S. Marshals Service selected Coinbase Prime in 2024 to safeguard and trade certain forfeited digital assets. Government wallets have since sent funds to the platform several times. As reported by crypto.news, authorities moved nearly $984,000 in FTX and Alameda-linked crypto in June, with about $768,000 reaching Coinbase Prime.

Trump reserve order limits Bitcoin sales

Trump’s March 2025 executive order created a Strategic Bitcoin Reserve and a separate stockpile for other digital assets. The order says Bitcoin placed in the reserve “shall not be sold” and must remain a U.S. reserve asset.

The order also allows some exceptions under existing law. Agencies may return assets to verified victims, use them for law enforcement work or follow a court order. Ether and other non-Bitcoin holdings fall under the separate digital asset stockpile, where the Treasury can set stewardship plans within its legal authority.

Reserve structure remains unsettled

The latest movement comes while federal agencies still debate who should manage the Bitcoin reserve.Treasury and Commerce have discussed control of seized BTC while officials review custody, legal authority and the need for new legislation.

Government-linked wallets still hold about $20.5 billion in crypto, based on current tracker estimates. Bitcoin accounts for most of the total, with roughly 325,000 BTC. The wallets also hold Ether, Tether, wrapped Bitcoin and other seized assets, although public trackers may not identify every federal address.

The recorded balance can change quickly because crypto prices move throughout the day. It can also change when courts order restitution, agencies transfer custody, or investigators identify new wallets. Public dashboards therefore provide estimates rather than a complete official federal accounting.

The Monday transfers ranked among the largest government-linked moves to Coinbase Prime in 2026. In April,a federal wallet sent 2.438 BTC from a separate criminal case to the platform.

On-chain records show where funds moved, but they do not reveal the government’s final instructions to Coinbase Prime. A confirmed sale would require further wallet activity, trading records or an official statement. Until then, the transaction remains a custody or asset-management move rather than proof of liquidation.

A solo bitcoin miner recently hit the jackpot in a lottery-like stroke of luck, turning a modest investment into an outsized gain.

The miner equipped with a small, hobbyist-grade device called a Bitaxe recently struck Bitcoin block number 957,382 and walked away with 3.1382 BTC, worth roughly $200,000.

The miner was running the rig for just eight hours through the Public Pool service. His average hash rate? A measly 995 GH/s, or about 1 terahash per second.

This marks the second time a single Bitaxe has solo-mined a block on Public Pool.

Data tracking handle Public Pool posted the win on X.

What is a Bitaxe?

It’s an open-source, credit-card-sized ASIC miner powered by the same Bitmain BM1370 chip found in massive industrial Antminer S21 machines. The Bitaxe Gamma version pumps out 1 to 1.3 TH/s while using just 15-21 watts of power. You can buy one for $60 to $150.

Think of it as the mining equivalent of winning the lottery with a scratch-off ticket from a gas station.

Solo mining is having a moment

This isn’t the first time a solo miner has made big gains on a small investment.

The Digital Asset Market Clarity Act has secured support from a second law enforcement organization before a Senate push. 

The Federal Law Enforcement Officers Association said it supports H.R. 3633 but wants lawmakers to revise several provisions before passage.

In a July 10 statement, FLEOA said the bill “represents meaningful progress” toward balancing digital asset development with public safety. The group represents more than 34,000 active and retired federal officers across over 65 agencies.

FLEOA backs the bill but seeks DeFi changes

FLEOA asked the Senate Banking Committee to make accountability clearer in decentralized finance, or DeFi. It also wants language that prevents companies from avoiding regulation by presenting controlled services as decentralized. The association urged senators to replace the bill’s “specific intent” test with an existing knowledge standard.

The group also asked Congress to state clearly that the legislation does not reduce current federal investigative powers or block lawful court processes. FLEOA said agencies must retain authority covering criminal cases, anti-money laundering rules, sanctions and counterterrorism financing. National President Mathew Silverman said officers need tools to investigate complex financial crimes.

Endorsement adds to a divided law enforcement debate

The support follows the National Organization of Black Law Enforcement Executives’ endorsement earlier in July. As previously reported, NOBLE became the first major law enforcement group to publicly back the bill.

Ji Kim, CEO of the Crypto Council for Innovation, said FLEOA’s position showed the measure was strong on consumer protection and law enforcement.

Significant. @FLEOAORG expressing support for CLARITY and confirming what many of us know–this bill is strong on consumer protection and law enforcement. The time is now to pass CLARITY to ensure the U.S. has these strong guardrails in place. https://t.co/DOBfOKjz0X

— Ji Kim (@_jikim) July 13, 2026

Other organizations have raised concerns about Section 604. The provision would protect some software developers and non-custodial service providers from being treated as money transmitters when they do not control customer funds. As reported by crypto.news, four law enforcement groups warned that broad protections could make some crypto crime investigations harder.

In addition, the Department of Justice later challenged parts of those claims.The agency viewed some warnings about lost enforcement powers as inaccurate. The Major County Sheriffs of America also moved from opposition to a neutral position after further talks over Section 604.

Senate faces a narrowing August window

The Senate’s published 2026 schedule places its August state work period from Aug. 10 through Sept. 11. That leaves Aug. 7 as the final scheduled session day before the break. As of July 14, the Senate’s public floor schedule did not list a vote on the CLARITY Act.

President Donald Trump urged the Senate to pass the measure on July 13, linking the appeal to the late Senator Lindsey Graham.The request came as negotiators worked to complete a merged draft before recess.

Senator Cynthia Lummis said on July 8, “This is likely our last chance to get real legislation for digital assets on the books before 2030.” She warned that other countries could set the rules if Congress fails to act.

This is likely our last chance to get real legislation for digital assets on the books before 2030. If we fail to pass the Clarity Act, we are ensuring another country will write the rules for digital assets and we spend the next decade catching up.

— Senator Cynthia Lummis (@SenLummis) July 8, 2026

Senate staff still need to align Banking and Agriculture Committee language before a final floor vote. The bill also needs bipartisan support to clear the Senate’s 60-vote threshold.

FLEOA’s endorsement gives supporters another law enforcement voice during negotiations. Its requested revisions show that questions over DeFi accountability, developer protections and investigative authority remain active before the scheduled summer break.

Binance has released its 44th proof-of-reserves report, showing that customer Bitcoin holdings increased during June while Ethereum and Tether balances declined. 

The report used a snapshot taken on July 1 and compared the figures with customer balances recorded on June 1.

Customer Bitcoin holdings rose 1.22% to about 640,000 BTC, an increase of 7,715 BTC. Ethereum holdings fell 1.41% to around 4.08 million ETH, a decline of 58,591 ETH. Customer Tether holdings dropped 1.51% to about 33.7 billion USDT, falling by roughly 510 million USDT.

Binance customer Bitcoin holdings continue rising

The July figures extend the rise in customer Bitcoin balances reported one month earlier. Binance users added 25,838 BTC in May, lifting their total holdings by 4.26% to about 630,000 BTC in the exchange’s 43rd proof-of-reserves report.

The latest increase was smaller than the previous month’s gain, but it kept customer BTC balances moving higher. The report does not show whether the change came from purchases, deposits, transfers between Binance services, or movements from other assets. It records balances at one point in time rather than individual customer activity.

Ethereum and USDT balances decline

Ethereum moved in the opposite direction after recording a strong increase in the previous report. Customer ETH holdings had risen 10.17% in May to about 4.14 million ETH. The July snapshot showed that the total fell by 58,591 ETH during June.

USDT balances also declined for a second monthly report. Binance users held about 34.3 billion USDT in the June 1 snapshot after balances fell by roughly 460 million tokens in May. The latest decrease brought the total to about 33.7 billion USDT. Lower stablecoin balances do not confirm that users converted USDT into Bitcoin or withdrew funds.

A similar pattern recently appeared at other major exchanges. As reported by crypto.news, Bybit and OKX recorded higher customer Bitcoin holdings while USDT balances fell in their latest reserve snapshots. However, the reports did not identify the reasons behind the balance changes.

Binance says customer assets remain backed

Binance states on its proof-of-reserves page that it holds customer assets on a 1:1 basis, along with additional reserves. The exchange uses Merkle Trees and zero-knowledge proofs to let customers check whether their account balances were included in the total liabilities covered by each report.

A proof-of-reserves report can show whether listed wallets hold assets linked to customer balances at the time of a snapshot. However, it does not provide a complete financial audit or explain every off-chain liability. A recent proof-of-reserves explainer noted that useful disclosures should remain recent, frequent and matched against customer liabilities.

The figures should therefore be read as a record of asset backing and customer balances on a specific date. They do not show the exchange’s complete financial position or the reasons customers moved assets between accounts, platforms or private wallets.

Report follows braoder changes at Binance

The latest reserve report arrived after a month of active derivatives trading. Binance recorded about $1.63 trillion in futures trading volume during June, its highest monthly total of 2026, according to CryptoQuant data.

Binance also introduced service changes for some European users when the European Union’s MiCA transition ended on July 1. As previously reported, the exchange said affected users could continue using options already communicated to them, including withdrawals where available. The date matched the snapshot used for the latest reserve report.

Earlier reserve rankings placed Binance ahead of other major exchanges. As reported by crypto.news, CoinMarketCap data ranked the platform first in January 2026 with about $155.6 billion in proof-of-reserve assets. The July report adds a new monthly view of customer balances, with BTC rising while ETH and USDT moved lower.

The U.S. government has transferred nearly $300 million worth of seized Bitcoin and Ether to Coinbase Prime, according to on-chain tracking data from Arkham. The move—sent from government-linked wallets to Coinbase’s institutional custody and services venue—has reignited questions about whether the assets will eventually be sold.

Arkham data indicates that on Monday, 3,940 BTC (valued at about $243.95 million) and 30,014 ETH (about $53.09 million) were deposited to Coinbase Prime. The transactions appear tied to multiple high-profile U.S. crypto seizures, making the transfer notable not only for its size, but for what it could signal about broader U.S. policy and asset management.

Key takeaways

• Arkham reports Monday’s deposits of 3,940 BTC and 30,014 ETH from U.S. government-linked wallets to Coinbase Prime.
• The transfers are associated with prior seizures, including assets linked to the “xanaxman” case and a crypto scheme involving Brian Krewson.
• While a sale is possible, the deposits alone do not confirm trading—Coinbase Prime also provides custody and related services that can be consistent with consolidation.
• The timing has drawn attention to an executive order stating seized Bitcoin should contribute to a “Strategic Bitcoin Reserve,” potentially limiting direct sales.
• Government-linked wallets still hold substantial crypto assets, which means investors may continue to watch wallet activity for clues on long-term disposition.

Large government deposits to Coinbase Prime raise questions

According to Arkham, the U.S. government moved 3,940 Bitcoin and 30,014 Ether to Coinbase Prime on Monday. These transfers are among the largest government-linked movements to Coinbase Prime this year, reintroducing a familiar market narrative: when seized assets reach an exchange-adjacent custody provider, the next step could be liquidation—or it could be operational management.

Galaxy Research’s Alex Thorn characterized the Bitcoin portion by tracing the source of the coins to assets seized from ryan farace, known online as “xanaxman,” as well as from the defunct btc-e exchange. That framing matters because it connects wallet flows to known enforcement histories, helping analysts interpret what category of seized funds is being handled.

On the Ether side, the Arkham-linked association points to assets tied to Brian Krewson, an Oracle employee alleged to be implicated in a $54 million crypto storage and money laundering scheme. In practice, such linkages help observers determine which legal cases may be behind the assets and therefore what disposal pathways might exist.

Does this conflict with the “Strategic Bitcoin Reserve” directive?

The timing of the deposits has prompted renewed scrutiny of U.S. policy. The transfers have been compared to a March 2025 executive order under President Donald Trump that instructs seized Bitcoin should be part of a “Strategic Bitcoin Reserve” and “should not be sold.” That language is now in the spotlight because moving seized coins into an institutional venue like Coinbase Prime is often interpreted as a step toward potential disposition.

However, there is an important distinction between custody movements and confirmed sales. Coinbase Prime is not only a venue for trading; it also supplies institutional custody, trading capabilities, financing, and staking services. As a result, the act of depositing assets does not, by itself, prove that the government intends to liquidate them.

That nuance is likely to be central for market participants. If the U.S. is consolidating assets in a custody framework for administrative or technical reasons, holders may see continued inflows to Prime without immediate sell pressure. If, instead, subsequent steps show transfers to trading desks or to counterparties in a manner consistent with execution, the executive-order debate could evolve from interpretation to measurable outcomes.

Why Coinbase Prime deposits have become a recurring pattern

This is not the first time government-linked wallets have used Coinbase Prime. The new transfer stands out mainly by scale—yet earlier examples underline that such custody routing has already been part of the government’s operational playbook.

In June, a U.S. government-linked wallet moved 98,589 Chainlink (LINK) tokens to Coinbase Prime, with tracing reportedly connecting those assets to seizures involving FTX and Alameda Research. Earlier still, in April, approximately 8.2 Bitcoin tied to the 2016 Bitfinex hack was sent to Coinbase Prime.

These precedents suggest that using Coinbase Prime may serve multiple functions, from custody consolidation to enabling potential future actions depending on legal and administrative decisions. The key unknown for investors is whether Monday’s transaction is simply another custody step in an ongoing process—or whether it marks a shift toward liquidation planning.

What analysts estimate remains in government wallets

Even without assuming a sale, the broader picture remains significant. Estimates cited in the reporting indicate U.S. government-linked wallets still hold cryptocurrency valued at roughly $20.6 billion in total, including around 325,000 BTC, 28,000 ETH, 146 million USDT, and 750 Wrappd Bitcoin (WBTC).

Those holdings underscore why wallet monitoring has become a staple for market observers: large balances concentrated in identifiable government wallets can influence expectations about future supply and regulatory risk, especially during periods when traders are already sensitive to changes in liquidity and headline policy.

At the same time, the size of remaining holdings also makes the “how” more important than the “whether.” Investors may need to watch not only deposits to custody providers, but subsequent on-chain behavior that would suggest conversions, withdrawals to trading counterparties, or other actions that are more consistent with sales rather than custody management.

For now, the key watchpoints are whether additional government-linked transfers continue to concentrate assets at Coinbase Prime and whether follow-on transactions indicate execution rather than consolidation. Until clearer on-chain signals appear, Monday’s move looks more like a high-value custody step than proof of immediate selling.

The US government moved nearly $300 million in seized Bitcoin and Ether to Coinbase Prime on Monday, renewing speculation that the assets could be sold. 

Data from Arkham shows 3,940 Bitcoin (BTC) (worth $243.95 million) and 30,014 Ether (ETH) (worth $53.09 million) were sent to Coinbase Prime on Monday. The funds were linked to several high-profile US government crypto seizures.

“These coin movements were comprised of coins seized from ryan farace (“xanaxman”) and defunct crypto exchange btc-e,” said Galaxy Research head Alex Thorn, referring to the Bitcoin movements. The Ether is linked to Brian Krewson, an Oracle employee implicated in a $54 million crypto storage and money laundering scheme. 

The transfers have drawn attention because a sale would appear to conflict with US President Donald Trump’s March 2025 executive order, which said Bitcoin seized by the US government should form part of the Strategic Bitcoin Reserve and should not be sold. 

However, the deposits do not confirm a sale, as Coinbase Prime provides institutions with custody, trading, financing and staking services, meaning the transfers may simply reflect asset consolidation. 

Related: US Bitcoin reserve hits snag as federal agencies debate for control: Bloomberg 

Although the US government has previously transferred cryptocurrency to Coinbase Prime, Monday’s transfer was one of the largest from government-linked wallets this year. 

In June, a US government-linked wallet moved 98,589 Chainlink (LINK) tokens to the platform, with the funds traced to assets seized from FTX and Alameda Research. In April, around 8.2 Bitcoin tied to the 2016 Bitfinex hack was sent to Coinbase Prime. 

US government-linked wallets are estimated to still hold $20.6 billion in crypto, including around 325,000 BTC, 28,000 ETH, 146 million USDT and 750 Wrappd Bitcoin (WBTC).

Magazine: Bitcoin nearing late stages of bear market: Jamie Coutts, Real Vision

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

The Digital Asset Market Clarity Act, commonly known as the CLARITY Act, is gaining momentum in the US as a second major law enforcement organization publicly endorses the bill ahead of a critical Senate deadline. The Federal Law Enforcement Officers Association (FLEOA) said it submitted a letter to the Senate Banking Committee supporting the legislation, while urging targeted revisions—particularly around how decentralized finance (DeFi) protections are structured and how accountability is defined.

FLEOA’s July 10 endorsement arrives after earlier backing from the National Organization of Black Law Enforcement Executives (NOBLE) and comes as lawmakers weigh whether the bill can clear Congress before the Senate’s August recess. Industry observers have framed the recess period as a potential make-or-break window for final action this year.

Key takeaways

• FLEOA has endorsed the CLARITY Act in a letter to the Senate Banking Committee, calling it progress toward balancing innovation and public safety.
• The association supports the bill’s consumer-protection goals but wants changes to narrow DeFi-related protections and clarify who is accountable in decentralized systems.
• Law enforcement groups have previously raised concerns that portions of the bill—especially around developer liability—could create overly broad exemptions that hinder investigations.
• The timing is tight, with the Senate’s Aug. 8 recess cited as a key milestone for whether the legislation can pass this year.

Second endorsement—support with conditions

In its statement, FLEOA characterized the current CLARITY Act draft as “meaningful progress” toward establishing a regulatory framework for digital assets while preserving authorities needed to combat crime. The organization said the legislation should maintain existing capabilities related to criminal enforcement, anti-money laundering, counterterrorism financing, sanctions enforcement, and investigative work.

At the same time, FLEOA emphasized that lawmakers should refine specific DeFi provisions. According to FLEOA’s recommendations, the bill’s DeFi protections should be narrowed, clearer accountability should be established for participants within decentralized finance systems, and the legislation should prevent entities from avoiding regulation simply by portraying themselves as decentralized.

FLEOA also asked Congress to adjust the “specific intent” language to make liability easier to establish, and to explicitly confirm that the CLARITY Act does not limit existing federal investigative authority. The request reflects a core tension that has followed the bill through prior negotiations: how to protect legitimate innovation without inadvertently creating gaps that prosecutors and investigators could struggle to navigate.

Crypto Council CEO Ji Kim linked FLEOA’s support to a broader argument that the bill strengthens consumer protection and preserves law enforcement effectiveness, noting the endorsement in a public statement Monday.

Why law enforcement scrutiny has mattered

The fresh FLEOA letter lands on the heels of earlier objections from law enforcement organizations that challenged parts of the CLARITY Act—particularly around developer liability for misuse by users on decentralized platforms.

Earlier reporting highlighted that in June, four law enforcement organizations contacted the White House with concerns centered on Section 604, which aims to protect developers from liability tied to illicit activity conducted by users on decentralized networks. The organizations argued that the language, as written, might function as a broad exemption, potentially complicating investigations into crypto-related crime.

Those concerns prompted attention within the administration. The White House invited law enforcement groups objecting to the bill’s language to a late-June meeting—an indication that the disputes were not merely academic. In July, the Major County Sheriffs of America shifted from opposition to neutrality, reflecting that negotiations and proposed changes were actively shaping positions across law enforcement.

FLEOA’s new letter suggests that—while support for the CLARITY Act is increasing—there remains a category of legal uncertainty that enforcement advocates want addressed before the bill locks in. For investors, traders, and builders, the practical effect is straightforward: the scope of developer protection and the definition of responsibility in DeFi can influence how compliance strategies, product design, and risk management decisions are made.

What the Senate deadline means for prospects

FLEOA’s endorsement also underscores the political urgency surrounding the CLARITY Act. The letter was released less than four weeks before Aug. 8, when the Senate is expected to recess. According to Senator Cynthia Lummis, the window to pass a digital assets bill could be limited this year, warning that failure to enact meaningful legislation could leave rulemaking to other jurisdictions and prolong uncertainty for US market participants.

For the crypto sector, the legislative calendar matters not just for timelines, but for predictability. When a bill is approaching a recess, negotiations often compress: controversial language becomes more difficult to rewrite in depth, and stakeholders may shift their focus toward narrower edits rather than sweeping redesigns.

That dynamic helps explain why the FLEOA letter emphasizes targeted adjustments rather than a fundamental withdrawal of support. The group is signaling that it can back the overall approach—while still pushing for clarifications that could reduce enforcement friction later.

DeFi protections and accountability: the remaining fault line

At the heart of FLEOA’s requests is the question of how the CLARITY Act treats decentralized systems in practice. Supporters of the bill have argued that rules should recognize technological realities and avoid punishing developers for actions they do not control. Enforcement advocates, however, have warned that overly protective language could unintentionally insulate individuals or firms whose conduct resembles regulated activity—even if marketing or structural claims point toward decentralization.

FLEOA’s call to narrow DeFi protections and clarify accountability is therefore not just legal fine-tuning. It goes directly to whether investigators can build cases effectively, and whether compliance obligations remain aligned with operational control and influence.

Equally important is FLEOA’s emphasis on “specific intent” language and an explicit preservation of existing investigative authority. In legislative drafting, intent requirements can determine what must be proven in court. Changes here can shift burdens of proof and affect litigation risk for market participants.

What remains unclear—until lawmakers see the evolving text—is the balance Congress will strike between encouraging responsible development and ensuring that decentralization claims cannot be used as a shield against enforcement. Readers should watch whether forthcoming amendments address the specific points raised by FLEOA and other law enforcement organizations, or whether compromises keep the legislation’s enforcement implications ambiguous.

With the Senate’s August recess approaching, the next steps will likely hinge on how quickly the committee can incorporate these requested revisions into a final bill text—and whether additional groups move toward alignment or raise new objections as the calendar tightens.