US Department of Justice Transfers $297 Million in Seized Crypto Assets to Coinbase Prime... Reigniting National Reserve Debate

On July 13 and 14, 2026, the US government transferred approximately $297 million worth of Bitcoin (BTC) and Ethereum (ETH) seized from criminal cases to Coinbase Prime. While such large-scale asset movements spark concerns about immediate selling pressure in the market, they are generally interpreted as routine asset transfers to institutional custodians under existing service agreements. However, coinciding with intensifying political debates over the federal government's digital asset holding policies, a closer examination of the Department of Justice's long-term virtual asset management strategy is being called for.

According to data from on-chain analysis platform Arkham Intelligence, this transfer activity began on Monday, July 13, 2026, and continued through Tuesday, the 14th. Specifically, it was confirmed that between approximately $288 million and $297 million worth of Bitcoin and Ethereum were deposited into Coinbase Prime accounts. This is analyzed as part of the procedures for transparently and securely managing assets confiscated during criminal investigations.

Deposits into Coinbase Prime do not necessarily signify an immediate sale; rather, they demonstrate that the federal government's asset management method is shifting from traditional public auctions to custodial management through institutional platforms.

The United States Marshals Service (USMS) utilizes Coinbase Prime, a regulated institutional platform, to manage forfeited virtual assets. In the past, seized Bitcoin was typically sold through public auctions, but recently, there has been a preference for professional custodial services to minimize market impact and enhance security. Therefore, this transfer is also more likely an operational move for secure storage rather than a preparatory step for a sale.

Current Status of the Federal Government's Massive Virtual Asset Portfolio

This $297 million transfer is only a small fraction compared to the total virtual asset holdings of the U.S. government. As of July 2026, the U.S. government holds more than approximately 197,354 Bitcoins, with an estimated value of about $22.07 billion. The total virtual asset portfolio is valued at approximately $22.9 billion, which includes Ethereum and stablecoins in addition to Bitcoin.

• March and April 2026: Several asset movements detected from federal wallets
• Early July 2026: 667 Bitcoins worth approximately $74.65 million transferred to a new wallet
• July 13-14, 2026: $297 million worth of BTC and ETH deposited into Coinbase Prime
• Total Bitcoin holdings: Approximately 197,354 BTC (worth about $22.07 billion)

These continuous asset movements have emerged as a political issue in conjunction with the 2026 U.S. presidential election cycle. In particular, as former President Donald Trump pledged to make Bitcoin a national strategic reserve asset if elected, voices of criticism regarding the current administration's potential sale of virtual assets are growing. The Republican Party argues that the government-held Bitcoin should not be sold but kept as a national asset, putting a brake on the Department of Justice's asset disposal procedures.

The market is showing short-term volatility, exhibiting a typical 'FUD (Fear, Uncertainty, Doubt)' reaction to the movements of government wallets. However, experts analyze that the move to institutional custodial institutions is a factor that increases market predictability in the long term. During the third quarter of 2026, investors are expected to closely monitor whether there are additional large-scale transfers, along with legislative trends such as the 'Strategic Bitcoin Reserve Act.'