US Government Moves Ethereum to Coinbase: Liquidation Signal?
On July 7, 2025, a US government wallet was recorded transferring approximately US$219,000 worth of Ethereum to Coinbase Prime.
While this amount is relatively small compared to the government’s estimated US$650 million Ethereum reserves, the move has raised concerns among the crypto community about the potential for the government to liquidate digital assets.
Origin of the Transferred Ethereum
According to information we quoted from Beincrypto media, the Ethereum transferred to Coinbase originated from the seizure of Chase Senecal in October 2022.
Senecal, known by the pseudonym “HZ,” was involved in NFT fraud and managed to collect digital assets illegally before finally being arrested by authorities.
The US government then seized various digital assets belonging to him, including Ethereum which has now been transferred to Coinbase.
Speculation and Reactions from the Crypto Community
This government move has sparked speculation among the crypto community. Some see it as an indication that the government may begin liquidating some of their Ethereum reserves.
However, there has been no official statement confirming the intention so far. Some analysts argue that the transfer could be part of the government’s routine asset management strategy.
Impact on the Ethereum Market
Despite the concern surrounding the transfer, the Ethereum price did not show any significant fluctuations after the news broke.
This suggests that the market may not yet consider this move a major threat to Ethereum’s price stability.
However, investors remain wary of the potential for a major sell-off by the government that could affect prices in the future.
Conclusion
The US government’s transfer of Ethereum to Coinbase has raised speculation about the government’s possible liquidation of digital assets.
Although the amount transferred is relatively small, the move is still a concern for the crypto community and investors.
Without further clarity from the authorities, the market will continue to monitor this development closely.
