US government-linked wallets transferred about $1.02 billion worth of Bitcoin on Oct. 8, with 12,267 BTC moved from an address connected to assets recovered from the 2016 Bitfinex hack. The transactions came as Bitcoin declined by roughly $4,000 over three days, renewing questions about whether the United States may be preparing to sell some of its seized cryptocurrency.
According to CryptoSlate, blockchain researchers tracked the latest transfer from a government-controlled address to an unidentified intermediary wallet. Blockchain analyst EmberCN later reported that 9,000 BTC, valued at approximately $739 million at the time, had reached Coinbase Prime, Coinbase’s institutional trading and custody platform.
The destination has attracted attention because Coinbase Prime can support both the safekeeping and trading of digital assets. However, a deposit to the platform does not establish that the Bitcoin was sold. The coins could remain in custody, be prepared for a future transaction or be transferred for another government-related purpose.
Three days of government-linked Bitcoin movements
The Oct. 8 transfer followed two days of substantial movements associated with US authorities. Galaxy Research reported that approximately 834 BTC was sent to Coinbase Prime on Oct. 6, followed by about 8,428 BTC on Oct. 7. Together, those transfers represented roughly 9,261 BTC, worth about $770 million based on the source’s valuation.
The latest activity brought the reported movements to three consecutive days. EmberCN said Bitcoin fell from approximately $86,500 when the transfers began late on Oct. 6 to around $82,500 on Oct. 8. The timing has led market participants to examine whether government-linked transactions contributed to the decline, although the available transfer data does not prove that they did.
The coins involved have different origins. Nearly half of the assets moved during the earlier activity came from Bitcoin recovered after the Bitfinex hack. Another portion was linked to cryptocurrency seizures associated with Binance. Galaxy also identified 2,456 BTC from wallets that had not previously been labeled as government holdings.
Galaxy attributed those previously unidentified coins to US authorities because they followed the same movement pattern as known government wallets and were sent to a federal Coinbase Prime deposit address. This suggests that publicly identified government wallets may not show the full amount of Bitcoin under Washington’s control.
The Coinbase Prime address had received approximately 11,567 BTC since it was first recorded in December 2025. Galaxy said about 6,406 BTC came from identified government wallets, while roughly 5,160 BTC came from addresses that had not previously been classified as government-controlled.
Galaxy described the Oct. 7 activity as the ninth-largest single-day Bitcoin outflow from identified US government wallets since 2013, excluding internal transfers. It was also the largest such outflow since Dec. 2, 2024. In an earlier assessment, the firm estimated that government-attributed wallets held about 319,086 BTC, down from a peak of 352,587 BTC in August 2024.
Legal claims complicate the government’s Bitcoin policy
The legal status of the Bitcoin is important because government-controlled coins are not automatically eligible for permanent storage in the Strategic Bitcoin Reserve. Under a March 2025 executive order, Bitcoin finally forfeited to the government and meeting the stated requirements can be transferred into the reserve, where it generally cannot be sold.
The order allows disposals required by courts or law, including transfers connected with verified crime victims and other specified forfeiture obligations. As a result, a movement to Coinbase Prime could have a different meaning depending on whether it represents custody, a trade, restitution or another legally required transfer.
The Bitfinex-related assets are subject to competing ownership claims. Federal prosecutors initially proposed returning recovered Bitcoin to the exchange through in-kind restitution. However, an April 2025 federal court ruling did not award Bitfinex direct restitution in the criminal case and directed competing claims over the forfeited assets into a separate ancillary proceeding.
Former Bitfinex customers have also claimed ownership of parts of the recovered cryptocurrency. Galaxy said the principal Bitfinex recovery wallet, holding about 94,643 BTC, remained untouched in its assessment. That leaves the precise status and purpose of the latest movement from another recovery address open to interpretation.
Galaxy’s estimate also included approximately 127,271 BTC associated with LuBian and Cambodian businessman Chen Zhi. The Justice Department filed a civil forfeiture complaint in October 2025 seeking permanent confiscation of Bitcoin allegedly connected to cryptocurrency fraud and money laundering. The Bitfinex and LuBian-related groups together represented more than 66% of the government’s earlier estimated holdings, but their legal situations are not identical.
Current market picture
Moneyiar market data at 21:54 on Oct. 8, 2026, shows Bitcoin at $81,643.537595781, down 1.79% over 24 hours and 3.4% over seven days. Chainlink was $12.6855162138, down 4.46% in 24 hours and 10.99% over seven days. Celestia stood at $0.5157153199, up 15.47% over 24 hours and 20.74% over seven days, while Telcoin was $0.0018343146, down 9.6% and 15.11% over those periods.
The immediate focus is on the remaining 3,267 BTC from the Oct. 8 movement and on how Coinbase Prime handles the coins already deposited there. Any later disposal could intensify scrutiny of the United States’ management of seized Bitcoin, while transfers linked to restitution or forfeiture proceedings would carry different legal implications from an ordinary market sale.
