The US government has decided to transfer Bitcoin funds to a Coinbase Prime address following the seizure of funds from Glenn Olivio. This move has consequently increased the government’s total holding to around 328,000 BTC, which is worth more than $22 billion, according to data from Arkham Intelligence.
Regarding this report, sources familiar with the situation disclosed that the US government moved approximately 2.438 BTC, valued at $177,000, confiscated from Olivio, in two separate transfers sent to a similar Coinbase account starting with 3EMqu.
Similar movements have been recorded in past cases, including funds associated with Ross Ulbricht, the creator of Silk Road.
The US expresses a strong commitment to boost its Bitcoin stockpile
Last month, the US government successfully made its first on-chain transaction in 2026, transferring approximately 0.33 BTC, valued at around $23,000, linked to a wallet titled “Miguel Villanueva Seized Funds.”
Following the three separate transfers, reliable sources noted that the first transaction consisted of about 0.05678428 BTC, the Second around 0.24020319 BTC, and the third approximately 0.03782683 BTC, bringing the total to 0.3348143 BTC, valued at around $22,876.55 at today’s price.
Nonetheless, reports highlighted that publicly available government statements and court documents failed to disclose further information about Villanueva or the main reason for the seizure.
This report was made public shortly after blockchain investigator ZachXBT, popular for his independent forensic investigations into cryptocurrency fraud, scams, and thefts, alleged that $40 million in cryptocurrency was removed from government-controlled seizure wallets. According to his findings, a manager of government digital forfeitures was connected to the person responsible.
At this moment, the US government had roughly 328,371.99 BTC, worth $22.45 billion, in its Bitcoin stockpile, according to Arkham data. Notably, the government had previously moved about 57.55 BTC to Coinbase Prime on November 3, 2025, before initiating this Villanueva Bitcoin transfer.
Interestingly, a larger transfer was executed on October 14 of last year, resulting in the seizure of 1,320.24 BTC linked to the “Potapenko/Turogin Forfeited Funds” wallets.
This discovery prompted several analysts to weigh in on the topic. They stressed that the recent Bitcoin transfer conducted by the US government represented US President Donald Trump’s Strategic Bitcoin Reserve (SBR), which he established through an executive order in 2025, that served as a pledge that federal authorities would never sell bitcoin.
In the meantime, reports noted a high likelihood that Glenn Olivio’s Bitcoin was linked to Glenn Bradford Olivio, who was arrested alongside co-conspirator Dana Rene Light in May 2025.
Both individuals face charges for plotting to possess and distribute a substance or mixture containing a detectable amount of anabolic steroids. This comprises synthetic testosterone and various anabolic-androgenic steroids such as Trenbolone and Nandrolone, based on information retrieved from court documents.
As a result, the two are facing five charges, including conspiracy to distribute a controlled substance, money laundering conspiracy, aggravated identity theft, and two counts of drug possession. For the time being, their personal details remain private.
The last update on this case was made in June last year. The government included a forfeiture notice in the indictment, a common step in seizing cryptocurrencies allegedly tied to criminal activity.
The US seeks to solidify its position as a leader in the crypto ecosystem
Regarding the current situation concerning the US government’s regulatory approach to Bitcoin and the recent Bitcoin seizure reports, the United States Secretary of the Treasury, Scott Bessent, emphasized that the administration would halt all sales of seized Bitcoin, opting instead to add it to the Strategic Bitcoin Reserve.
He made these remarks during the World Economic Forum in Davos, where he told journalist Christine Lee that this plan represents a broader initiative to drive digital asset innovation in the United States while ensuring proper federal custody and control over forfeited cryptocurrencies.
Notably, the statement reflects concerns about the government’s handling of Bitcoin seized from both the New York-based Tornado Cash developers and the Samourai Wallet developers.
Afterward, Bessent clarified that seized BTC would be retained by the federal government following legal proceedings, rather than auctioned off as in the past, without commenting on ongoing legal issues.