US Government Seized BTC from Coinbase as Bitcoin Tops $22B

US government transfers seized BTC to Coinbase as its Bitcoin reserves continue to expand, reinforcing its long-term digital asset strategy

ContentsBitcoin transfers signal accumulation strategyLarge seizures continue to shape holdingsUS reinforces long-term Bitcoin policyThe move adds to a growing stockpile now valued at over $22 billion. Officials say the government plans to retain these assets instead of selling them.

The United States has transferred seized Bitcoin to a wallet linked to Coinbase Prime following a recent forfeiture tied to Glenn Olivio

The transfer increased total federal Bitcoin holdings to about 328,000 BTC, based on data from Arkham Intelligence.

Sources familiar with the matter said roughly 2.438 BTC, valued near $177,000, was moved in two transactions. The funds were sent to a Coinbase-linked address beginning with 3EMqu. Similar wallet movements have appeared in earlier government seizures.

Past cases include Bitcoin tied to Ross Ulbricht, the creator of Silk Road. These patterns suggest a consistent approach in how seized crypto is managed.

Bitcoin transfers signal accumulation strategy

The latest transfer follows earlier activity recorded this year. In its first on-chain move of 2026, the government shifted about 0.33 BTC tied to a wallet labeled Miguel Villanueva Seized Funds.

Transaction data shows three separate transfers. The amounts included 0.05678428 BTC, 0.24020319 BTC, and 0.03782683 BTC. Together, they totaled about 0.3348143 BTC, worth close to $23,000.

Public records and court filings did not reveal further details about Villanueva or the seizure. The lack of disclosure has raised questions among market observers.

Meanwhile, blockchain investigator ZachXBT claimed that $40 million in digital assets was removed from government-controlled wallets. He alleged a link between a forfeiture manager and the incident. Authorities have not confirmed the claim.

Arkham data shows the US government held about 328,371.99 BTC, valued at roughly $22.45 billion at the time of reporting. Earlier, about 57.55 BTC was sent to Coinbase Prime in November 2025.

Large seizures continue to shape holdings

Significant seizures have also contributed to the growing reserve. In October last year, authorities confiscated 1,320.24 BTC tied to wallets labeled Potapenko and Turogin forfeited funds.

Analysts believe these transactions align with a broader policy shift. The initiative is linked to a Strategic Bitcoin Reserve introduced under Donald Trump through an executive order in 2025. The policy outlines a commitment to retain seized Bitcoin.

The Olivio case is also drawing attention. Reports suggest that Bitcoin may be linked to Glenn Bradford Olivio, who was arrested in May 2025. He was charged alongside Dana Rene Light.

Court documents show both individuals face multiple charges. These include conspiracy to distribute controlled substances and money laundering. Additional counts involve identity theft and drug possession.

US reinforces long-term Bitcoin policy

The latest developments reflect a broader stance on digital assets. Treasury Secretary Scott Bessent recently stated that seized Bitcoin will not be sold.

Speaking at the World Economic Forum, he said the assets would be added to a national reserve. The goal is to support innovation while maintaining federal control.

The policy also follows scrutiny over cases tied to Tornado Cash and Samourai Wallet developers. Officials aim to ensure transparency in handling seized crypto.

Bessent confirmed that Bitcoin will remain in government custody after legal proceedings conclude. This marks a clear shift from past auctions of confiscated assets.