US Government Moves $9.99 in Seized ETH to Coinbase Prime

A U.S. Government-controlled Ethereum wallet executed a small transaction to Coinbase Prime on July 7, 2025. The move involved just $9.99 in ETH, yet it reignited attention due to the wallet’s $100K holdings, originally seized from Chase Senecal in October 2022. The transaction appeared on-chain at 16:09:23 UTC in block #22868416. The wallet is labeled “US Government FBI (0xc55),” and the destination was “Coinbase Prime Deposit (0xcfB).”

This transfer was not a random outbound test-it reflects structured movement between high-level custodial accounts. The wallet sent 0.003943494479247713 ETH ($9.99), paying a 0.000105039321012 ETH fee ($0.25) with a gas price of 4.787856672 GWEI. The gas limit was set and fully used at 21,000, suggesting a standard, clean execution path. This activity draws attention to how governments are preparing their seized crypto holdings for potential liquidation, conversion, or reallocation.

The sentiment among traders is split; some see this as a procedural warmup, while others suspect a larger ETH movement could follow. Community chatter reinforces this outlook, with social platforms buzzing over what many believe could be a critical moment. Some observers think this reflects a turning point, especially with ETH now frequently intersecting institutional frameworks. This transaction doesn’t just confirm custodial alignment-it shows blockchain transparency in practice, and the readiness of U.S. authorities to act.

Ongoing inflows and strong wallet activity continue to reflect long-term conviction, suggesting that larger players are staying in position. While some celebrate the gains, others expect more downside before any real recovery. The wallet holds $100,000 in ETH. Whether this test signals a planned exit or an internal audit cycle remains unknown-but the movement is now on-chain, visible, and impossible to ignore.

The transfer of seized cryptocurrency to a major exchange like Coinbase Prime highlights the government's approach to handling digital assets. By moving the ETH to Coinbase, the government can potentially convert the cryptocurrency into fiat currency, which can then be used for various purposes, including funding law enforcement activities or returning the assets to their rightful owners. The fact that $100,000 worth of ETH remains on-chain suggests that the government may be strategically managing its seized assets, possibly waiting for more favorable market conditions or completing necessary legal procedures before liquidating the remaining holdings.

This event underscores the growing importance of cryptocurrency in the financial landscape and the need for regulatory bodies to develop effective strategies for managing and securing digital assets. As more individuals and entities engage in cryptocurrency transactions, the government's ability to track, seize, and manage these assets will become increasingly crucial. The transfer to Coinbase Prime also highlights the role of major exchanges in facilitating the movement of large sums of cryptocurrency, demonstrating their significance in the broader financial ecosystem.