The US government moved more than $1 billion worth of seized Bitcoin from a wallet linked to the recovery of funds stolen in the 2016 Bitfinex hack, blockchain analysts reported. The transaction came only hours after another transfer of about $770 million in Bitcoin to a Coinbase Prime wallet, putting a combined value of more than $1.7 billion in cryptocurrency transfers under scrutiny.
According to Cointelegraph, blockchain data reviewed on Wednesday showed that the wallet sent more than 12,267 BTC. The recipient address had not been publicly identified at the time of publication, leaving it unclear who controlled it or what the government intended to do with the coins.
Transfers tied to Bitfinex recovery
Arkham Research linked the sending wallet to cryptocurrency recovered in connection with the Bitfinex breach. Hackers stole 119,756 BTC from the exchange in 2016. The latest movement therefore involves assets associated with one of the largest cryptocurrency theft investigations.
The earlier transaction involved Bitcoin valued at approximately $770 million being sent to a Coinbase Prime wallet. Coinbase Prime provides institutional cryptocurrency trading and custody services, although the available information did not establish what would happen to the Bitcoin after its transfer there.
Cointelegraph said it contacted the US Marshals Service and the Department of Justice for comment on the Coinbase Prime transfers, but had not received an immediate response. The source material also did not identify the purpose of either transaction, whether the Bitcoin was being prepared for a sale, transferred for custody, or moved for another administrative reason.
Why the government’s Bitcoin holdings matter
US authorities accumulate cryptocurrency through seizures connected to criminal cases and investigations. Estimates cited in the report put government holdings at 328,372 BTC as of 2026, making the United States a significant holder of the asset.
The scale of the wallet movements matters because transfers involving a large Bitcoin holder can attract attention across the crypto market. However, a blockchain transfer by itself does not confirm that the coins have been sold. The destination of the latest transaction was not identified, and no official explanation was available when the transfers were reported.
In March 2025, US President Donald Trump signed an executive order establishing a strategic Bitcoin and crypto reserve. Lawmakers were still working to codify that order into law, according to the report. The government’s handling of seized digital assets therefore sits alongside a broader debate over how the United States should manage cryptocurrency under official control.
Moneyiar market picture
Moneyiar market data at 21:39 on October 8, 2026, showed Bitcoin at $81,671.14, down 1.88% over 24 hours and 3.36% over seven days. Sei was priced at $0.06649, down 3.06% in 24 hours and 5.99% over seven days.
Nexus stood at $0.0000007967, falling 1.65% over 24 hours and 1.59% over seven days. Walrus traded at $0.03327, down 9.71% over 24 hours and 1.63% over seven days.
