Coinbase Facilitates U.S. Government’s $115M Ethereum Windfall Without Active Trading

The U.S. government has realized a staggering $115 million profit from its Ethereum holdings without engaging in traditional buying or trading activities. This windfall was achieved through a strategic transfer of 76.56 ETH to Coinbase on July 7, when Ethereum was trading near $2,530, which initially locked in a $132,000 gain. The funds, originally seized from the 2022 Chase Senecal phishing scam, were quietly returned weeks later as ETH's price surged past $4,300—netting an additional $332,460. This passive accumulation of profits highlights the potential of cryptocurrency holdings as a non-traditional revenue stream for government entities. The transaction demonstrates how seized digital assets can appreciate significantly even when held in custody, offering a compelling case for the strategic management of crypto assets. As of August 2025, this event stands as a noteworthy example of how governments can benefit from the cryptocurrency market's volatility without active participation.

How the US Government Just Made $115M in Ethereum Without Buying or Trading

The U.S. government has realized a $115 million windfall from its ethereum holdings without engaging in traditional buying or trading. A strategic transfer of 76.56 ETH to Coinbase on July 7, when Ethereum was trading near $2,530, locked in a $132,000 gain. The funds, originally seized from the 2022 Chase Senecal phishing scam, were quietly returned weeks later as ETH surged past $4,300—netting an additional $332,460.

This maneuver contrasts with previous government sell-offs, showcasing a calculated approach to crypto asset management. The same wallet still holds over $23.4 billion across Bitcoin, Ethereum, and various altcoins, demonstrating the growing scale of state-controlled digital assets.

On-chain investigator ZachXBT first exposed the Senecal case, which involved stolen NFTs and luxury watches alongside 86 ETH. The recent transactions suggest authorities are developing more sophisticated strategies for handling seized cryptocurrencies.

Coinbase Hacker Allocates Stolen Funds to Solana Purchase Amid Market Rally

The perpetrator behind May's Coinbase breach has resurfaced with a strategic acquisition of 38,126 SOL tokens worth $7.9 million, funded by stolen customer assets. Blockchain sleuth Ember CN traced the movement of 7.957 million DAI converted to USDC, then bridged to solana for the purchase at $208.7 per token.

This marks the hacker's third major capital deployment since the breach, following May's sale of 26,347 ETH for 68.18 million DAI and a July repurchase of 5,513 ETH. The SOL acquisition coincides with the asset's 17% monthly gain, though it remains 29% below January's $293 peak.

Technical analysts observe Solana forming a rounded bottom pattern within a rising channel, with key resistance levels at $215 and $227. The $208.7 entry point suggests confidence in SOL's potential rally toward $360, as predicted by market observers.