Ethereum News Today: U.S. Government Seizes $300,000 in Hacked Ethereum via Coinbase

The U.S. government has executed a $300,000 seizure of Ethereum (ETH) linked to the 2021 Uranium Finance hack, with Coinbase facilitating the transaction. On-chain activity on August 21, 2025, showed the government withdrawing 76.56 ETH from a Coinbase wallet tied to the case. This action adds to a total of $34.9 million in assets recovered from the hacker, including $19.27 million in Wrapped BNB (WBNB) and $15 million in ETH and stablecoins. The government has initiated a claims process for victims to recover their share of the funds, with unclaimed assets likely to be directed toward the U.S. strategic crypto reserve.

This seizure marks the latest in a series of law enforcement actions targeting illicit crypto holdings. In February 2025, the U.S. Attorney’s Office for the Southern District of New York (SDNY) and Homeland Security Investigations (HSI), in collaboration with TRM Labs, successfully traced and seized $31 million from the Uranium Finance breach. The original hack, which occurred in April 2021, saw attackers siphon $53.7 million from the protocol. Despite the use of crypto mixers and decentralized exchanges to obscure the trail, investigators were able to identify and recover the assets through blockchain analysis.

The role of Coinbase in this operation highlights the expanding cooperation between crypto platforms and regulatory agencies. The exchange, as a custodial service, provided the necessary infrastructure for the government to access the funds. This case exemplifies how public blockchain networks are being used to track, trace, and repurpose stolen assets. The transparency of blockchain, while often cited for its privacy benefits, also enables regulatory scrutiny and enforcement, especially in the context of asset recovery.

The government has encouraged victims of the Uranium Finance hack to reach out through official SDNY channels to begin the claims process. For any funds not claimed, they are expected to contribute to the U.S. strategic Bitcoin reserve. Treasury Secretary Scott Bessent has emphasized that budget-neutral methods—such as the seizure of illicit digital assets—are central to the government’s strategy for expanding its Bitcoin holdings. He stated that the Treasury is committed to fulfilling the President’s vision of positioning the U.S. as the “Bitcoin superpower of the world.”

This case underscores the growing intersection between cryptocurrency and law enforcement. As digital assets become more integrated into financial systems, regulators are adapting their tools to address new challenges in asset tracing and recovery. The Uranium Finance case, while rooted in a past breach, illustrates how blockchain technology and institutional collaboration can be leveraged to address present and future threats to digital asset security.

Source:

[1] Coin Edition. (2025). [https://coinedition.com/coinbase-serves-as-conduit-for-us-govts-300k-seizure-of-hacked-eth/](https://coinedition.com/coinbase-serves-as-conduit-for-us-govts-300k-seizure-of-hacked-eth/)