US Government Moves Over $1B in Seized Bitcoin Following $770M Transfers
The US government executed a major cryptocurrency transaction, moving over 12,267 Bitcoins valued at more than $1 billion. This transfer came just hours after similar transactions totaling $770 million in Bitcoin were moved to a Coinbase Prime wallet. The movements are associated with recovered funds from the 2016 Bitfinex breach where 119,756 BTC were stolen.
Transfer of Seized Bitcoins Linked to Bitfinex Hack
Blockchain data from Wednesday revealed that a wallet associated with cryptocurrency seized by the US government transferred over 12,267 Bitcoins. These assets are part of funds seized in criminal investigations. Arkham Research connected this wallet to the recovery of funds stolen during the 2016 Bitfinex hack in which 119,756 BTC were taken by hackers. The identity of the recipient address owner remains unknown.
Cointelegraph reached out to the US Marshals and Department of Justice for comment on the Coinbase Prime transfers but did not receive a response.
Scale of Seized Bitcoin Holdings and Government Crypto Policy
Estimates indicate that by 2026, the US government will hold approximately 328,372 BTC seized through various criminal cases and investigations. In March 2025, President Donald Trump signed an executive order establishing a strategic Bitcoin and cryptocurrency reserve. Nonetheless, lawmakers continue efforts to formalize the order into binding law.
Why it matters
This news highlights substantial movements of seized cryptocurrency by the US government, demonstrating ongoing efforts to recover funds tied to cybercrimes like the Bitfinex hack. Public disclosure of such transactions enhances transparency and illustrates the scale of state-held digital assets management. It also underscores the importance of regulatory frameworks and strategic cryptocurrency reserves within governmental policy.
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