U.S. Government Moves $606,000 in Bitfinex-Linked Bitcoin to Coinbase

The U.S. government transferred approximately $606,000 in Bitcoin tied to the 2016 Bitfinex hack to Coinbase Prime on Thursday, according to on-chain data tracked by Arkham Intelligence. The coins are part of a larger pool of seized assets that a federal court has ordered returned to Bitfinex rather than liquidated by the government.

Arkham Tracks 8.2 BTC Moving From a Federal Wallet to Coinbase Prime

On-chain data tracked by Arkham Intelligence shows two transfers totaling roughly 8.2 BTC leaving a wallet labeled “Bitfinex Hacker Seized Funds” and arriving at a Coinbase Prime deposit address. Arkham valued the combined transfer at approximately $606,000.

The move follows earlier government wallet activity on March 3 and April 10, both of which were linked to separate enforcement cases. Transfers to exchange deposit addresses are sometimes read as a precursor to selling, but they can also reflect custody changes or other administrative steps.

Court Order Requires the Seized Bitcoin Be Returned to Bitfinex

These coins are not available for government sale. In early 2025, federal proceedings established that the seized Bitfinex-related Bitcoin must be returned in kind to the exchange, rather than liquidated and sent to the U.S. Treasury.

In August 2016, Ilya Lichtenstein exploited a vulnerability in Bitfinex’s multi-signature wallet system and fraudulently authorized more than 2,000 transactions, moving 119,756 BTC to a wallet under his control. The haul was worth roughly $72 million at the time. Investigators seized a portion of the stolen Bitcoin in 2022, then valued at approximately $3.6 billion, after gaining access to encrypted files tied to Lichtenstein.

Lichtenstein was arrested in February 2022 and sentenced to five years in November 2024, with credit for time served since his arrest. He was released to home confinement in January 2026 under the First Step Act, having served roughly 14 months after sentencing.

Bitfinex Plans to Redeem Recovery Tokens and Buy Back LEO

Bitfinex has laid out how it intends to use the returned coins once they arrive. The exchange said it will fully redeem all outstanding Recovery Right Tokens, which are digital claims issued to customers who suffered losses in the 2016 hack.

After those redemptions, Bitfinex said it will devote at least 80 percent of the remaining net proceeds to repurchasing and burning its UNUS SED LEO token. That commitment is documented in the token’s published whitepaper and recovery framework.

U.S. Government Retains $24 Billion in Bitcoin for the Strategic Reserve

As of April 2026, federal wallets hold an estimated 328,361 BTC, valued at roughly $24 billion at current prices, according to Arkham Intelligence tracking. Those figures are based on flagged wallet data rather than an official government audit.

The U.S. government said last year that seized Bitcoin holdings would form part of a national strategic Bitcoin reserve. That policy means the broader pool of government-held Bitcoin is intended to be retained rather than sold, though the Bitfinex-linked coins are on a separate, court-ordered return path to the exchange.