The U.S. government has transferred 12,267 Bitcoin worth about $1.01 billion from wallets linked to the seizure of funds stolen in the 2016 Bitfinex hack, according to blockchain analytics firm Arkham. The coins were sent mostly to a new, unlabeled address rather than directly to an exchange, leaving the purpose of the move unclear.
What the transaction involved
The transfer took place at 9:33 a.m. Eastern time on Thursday. Almost all of the Bitcoin went to the newly created address, while 0.0012 BTC was sent to a second wallet. Arkham has marked both outputs as spent, indicating that the coins subsequently moved again.
The transfer involved Bitcoin seized from Ilya Lichtenstein, whom U.S. authorities identified as the person who orchestrated the 2016 Bitfinex attack, and his wife, Heather Morgan. The government seized roughly 94,000 BTC connected to the case in 2022.
The latest movement followed a series of transfers involving other government-linked wallets. On Wednesday, approximately $119 million in USDT and about 2,574 BTC—worth around $215 million—were sent to Coinbase Prime through intermediary addresses. The government also moved $288 million in seized cryptocurrency to Coinbase Prime in July.
A transfer does not confirm a sale
The Bitcoin moved on Thursday did not go to an exchange. That distinction matters because cryptocurrency can be transferred between wallets for custody, administration or other reasons without being sold.
Coinbase Prime also provides custody services, so deposits there do not by themselves establish that the government has liquidated the assets. The same limitation applies to the recent USDT and Bitcoin transfers routed through or sent to the platform. According to Decrypt, the movements have nevertheless renewed attention on how the U.S. government manages its cryptocurrency holdings.
A March 2025 executive order directed forfeited Bitcoin into a Strategic Bitcoin Reserve and stated that the reserve would not be sold. Later, Treasury Secretary Scott Bessent withdrew earlier suggestions that the government would not acquire additional Bitcoin, saying the administration would explore budget-neutral ways to increase the reserve.
Government’s remaining Bitcoin and market picture
Before that executive order, a federal court in January 2025 cleared the way for the sale of $6.5 billion in Bitcoin seized from the Silk Road case. The government still holds approximately 306,795 BTC, valued at about $24.85 billion when Bitcoin was trading near $81,000, according to Arkham.
Moneyiar market data at 21:49 on October 8, 2026, showed Bitcoin at $81,568.92, down 1.91% over 24 hours and 3.51% over seven days. Sei was at $0.06644, down 2.92% in 24 hours and 5.73% over seven days. Sentient traded at $0.02468, down 4.76% over 24 hours but up 14.91% over seven days, while Nexus stood at $0.000000797, down 1.71% over 24 hours and 1.46% over seven days.
