2 min read
The U.S. government just shuffled more than $1 billion worth of Bitcoin tied to one of crypto's most notorious hacks.
A wallet that blockchain analytics firm Arkham labels as holding the Bitfinex hacker's seized funds sent 12,267 BTC, worth about $1.01 billion, in a single transaction at 9:33 a.m. ET on Thursday. Nearly all of it landed at a new, unlabeled address, while 0.0012 BTC went to a second wallet.
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The coins didn't go to an exchange, and moves between wallets aren't necessarily a sign of a sale. Arkham's data does mark both outputs as already spent, though, meaning the coins have since moved again.
The Bitcoin is part of roughly 94,000 BTC the government seized in 2022 from Ilya Lichtenstein, who orchestrated the 2016 Bitfinex hack, and his wife, Heather "Razzlekhan" Morgan. As Decrypt reported in April, the government also moved a small batch of about 8.2 BTC from the same seizure to Coinbase Prime.
US government Bitcoin moves. Image: Arkham
Thursday's transfer follows other similar, recent moves. On Wednesday, government-linked wallets sent about $119 million in USDT to Coinbase Prime, along with roughly 2,574 BTC, worth about $215 million, routed through intermediary addresses, according to Arkham.
In July, it shifted $288 million in seized crypto to Coinbase Prime. Because Coinbase Prime also offers custody, deposits there don't confirm a sale.
The activity raises fresh questions about what Washington plans to do with its stash. President Donald Trump's March 2025 executive order directed forfeited Bitcoin into a Strategic Bitcoin Reserve that wouldn't be sold. That August, Treasury Secretary Scott Bessent walked back comments suggesting the government wouldn't buy more Bitcoin, saying it would explore budget-neutral ways to add to the reserve.
Before the order, a federal court in January 2025 cleared the way for the sale of $6.5 billion in Bitcoin seized from Silk Road.
The government still holds about 306,795 BTC, worth roughly $24.85 billion with Bitcoin trading near $81,000, according to Arkham.
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