The United States government has transferred a notable amount of Ethereum (ETH) to cryptocurrency exchange Coinbase, fueling speculation about a potential sell-off for the second-ranked digital currency.
Specifically, on July 7, 2025, a wallet labeled “US Government: FBI” completed a transfer of approximately 86.56 ETH, valued at around $219,000 at the time, to Coinbase Prime, according to data provided by Arkham Intel.
The shift followed a small $10 test transaction sent just minutes earlier, a common precursor to larger liquidations, custody transfers, or internal accounting moves.
Arkham noted that the wallet still holds over 100,000 ETH, originally seized from NFT scammer Chase Senecal in October 2022. Until this transfer, the address had remained dormant since the seizure was made.
The deposit is being closely monitored, as it appears to indicate that the government may be preparing to sell part of its seized ETH holdings. Transfers to Coinbase Prime, a service tailored for institutional clients, often precede over-the-counter sales or market liquidations, which can add downward pressure to cryptocurrency prices.
While there is no official confirmation that the government intends to liquidate these funds immediately, the context and timing of the test transaction suggest preparations for larger moves.
Indeed, the transfer comes at a time when the United States is moving to regulate cryptocurrencies with the establishment of a strategic reserve that also includes Ethereum.
Ethereum price analysis
By press time, Ethereum was trading at $2,534, down 0.5% in the past 24 hours. On the weekly timeline, ETH is up over 2%.
As things stand, it remains to be seen if Ethereum can hold the $2,500 support zone, which is crucial for targeting the $3,000 level.
Although the $200,000 in Ethereum moved by the government is minimal, if the wallet follows up with more assets and proceeds, it will likely trigger price volatility for Ethereum.
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