US Government Moves $103M in Seized Bitcoin and BNB, Largest Holder Still Not Selling

What happened: On October 7, 2026, US government-labeled wallets transferred 833.6 BTC (about $71.6 million) to Coinbase Prime deposit addresses and shuffled 40,285 BNB (about $31.6 million) through multiple unlabeled addresses. The Bitcoin originated from high-profile seizures, including the HashFlare fraud and Bitfinex hack, while the BNB was traced to assets seized from Alameda Research. Despite the movement to Coinbase, no sale has been confirmed, and a 2025 executive order technically prohibits the sale of forfeited Bitcoin. The US government remains the world’s largest sovereign holder of Bitcoin, with approximately 325,000 BTC (worth about $27 billion), or 1.6% of the total supply.

Why it matters: Large government transfers to exchanges typically stoke market fears of imminent sell pressure, but the legal framework currently bars US authorities from liquidating their Bitcoin holdings. The move may reflect custodial reorganization rather than intent to sell. However, the BNB portion—governed by different rules—could be more readily liquidated. This episode highlights the scale of government crypto holdings and the policy ambiguity surrounding their management.

Source: Decrypt