Summary
- The U.S. government has transferred 12,267 BTC, valued at approximately $1.01 billion, from the Bitfinex hack to a new address, according to Arkham.
- This transaction followed the movement of about $119 million in USDT and around 2,574 BTC to Coinbase Prime the previous day, although it's unclear if it indicates a sale.
- An executive order from March 2025 mandates that forfeited Bitcoin be placed into a reserve that will not be sold, with the government retaining approximately $24.85 billion in Bitcoin.
The U.S. government recently executed a significant transfer involving Bitcoin linked to one of the most infamous hacks in cryptocurrency history.
A wallet identified by blockchain analytics firm Arkham as holding funds seized from the Bitfinex hacker moved 12,267 BTC, equivalent to about $1.01 billion, in a single transaction at 9:33 a.m. ET on Thursday. Most of the Bitcoin was sent to a new, unmarked address, while 0.0012 BTC was directed to another wallet.
It's important to note that these coins were not transferred to an exchange, and movements between wallets do not necessarily indicate a sale. Arkham's data indicates that both outputs from this transfer have already been spent, suggesting the coins have been transferred again.
This Bitcoin transfer is part of a larger seizure of approximately 94,000 BTC from Ilya Lichtenstein and his wife, Heather "Razzlekhan" Morgan, who were implicated in the 2016 Bitfinex hack. As reported by Decrypt in April, the government had previously moved a smaller amount of about 8.2 BTC from the same seizure to Coinbase Prime.
Thursday's transaction follows a series of similar transfers. On Wednesday, wallets linked to the government sent around $119 million in USDT and about 2,574 BTC, valued at approximately $215 million, to Coinbase Prime, utilizing intermediary addresses as per Arkham's data.
Earlier in July, the government transferred $288 million in seized cryptocurrency to Coinbase Prime. Since Coinbase Prime also provides custody services, these deposits do not confirm a sale.
This activity has sparked new inquiries regarding the government's intentions for its Bitcoin holdings. A March 2025 executive order established a Strategic Bitcoin Reserve for forfeited Bitcoin, which is not intended for sale. In August, Treasury Secretary Scott Bessent revised earlier statements about the government’s purchasing plans, indicating a willingness to explore budget-neutral methods for enhancing the reserve.
Prior to this executive order, a federal court in January 2025 had approved the sale of $6.5 billion in Bitcoin seized from Silk Road.
The government currently retains approximately 306,795 BTC, worth around $24.85 billion, with Bitcoin trading near $81,000, as per Arkham's analysis.