US Government Moves $219,000 in Ethereum to Coinbase Prime

The US Government has transferred over $219,000 worth of Ethereum (ETH) to Coinbase Prime, sparking discussions about a potential selloff of cryptocurrencies. The transaction, which occurred on July 7, originated from a wallet labeled “US Government: FBI.” This wallet initially held $100,000 worth of ETH, which was seized from NFT scammer Chase Senecal, also known as Horror (HZ), in October 2022.

In total, the US Government currently possesses 65,156 ETH, valued at approximately $166 million. The government has not issued any official statements regarding these recent deposits, but the timing and nature of the transaction suggest that larger movements may be on the horizon.

Coinbase Prime is a platform designed for institutional transactions, leading market observers to speculate that the deposit could indicate the government's intention to sell some of its seized Ethereum holdings. Large over-the-counter sales or direct market liquidations could significantly impact crypto prices, especially given the increasing regulatory scrutiny from US authorities on digital assets.