US Government Moves $984K in Seized FTX Funds to Coinbase Prime

The US government moved roughly $984,000 in cryptocurrency tied to Alameda Research and FTX to Coinbase Prime, blockchain data shows.

Arkham Intelligence tracked the transfers. About $768,000 of that sum went to Coinbase Prime. The funds remain linked to the FTX bankruptcy proceedings.

The government's crypto portfolio now totals about $20.93 billion, according to Arkham. Bitcoin makes up the bulk: 328,354 BTC worth roughly $20.57 billion. The portfolio also holds 62,437 ETH, plus smaller amounts of USDT, WBNB, BNB, and WBTC.

Coinbase Prime is a platform for institutional custody and liquidation. The transfer is part of the FTX estate's recovery process. Authorities have not indicated plans to sell the assets.

The government's Bitcoin holdings alone represent about 0.5% of the circulating supply. Any large-scale liquidation could pressure prices, though no official sale plans have been announced. The FTX estate continues working through bankruptcy. Creditors await distributions.

For broader context on how government seizures affect crypto market analysis, the size of the government's Bitcoin position is worth tracking. The Bitcoin (BTC) profile shows that such holdings can become an overhang if liquidation accelerates.