CoinDesk
U.S. government-linked wallets moved 12,267 BTC, worth about $1.01 billion, from a wallet holding bitcoin seized in the 2016 Bitfinex hack to new, unlabeled addresses. No exchange deposit was recorded, making the transfer more consistent with wallet reshuffling than a sale.
Why it matters
The movement comes as the government’s stated policy for forfeited bitcoin has shifted toward holding it in a Strategic Bitcoin Reserve. A March 2025 executive order directed forfeited bitcoin into the reserve and said it should not be sold. Arkham estimates the government still holds about $25.5 billion in crypto.
The transfer followed exchange-bound activity a day earlier: roughly 3,200 BTC, worth about $264 million, and $119 million in USDT reached Coinbase Prime deposit addresses. Those funds came from wallets linked to the FTX/Alameda and Bitfinex seizures, according to Arkham. Coinbase Prime also provides custody, so a deposit there does not by itself establish that assets were sold.
Market impact
The distinction between moving coins to new wallets and depositing them at an exchange matters to traders tracking potential government supply. This $1.01 billion transfer showed no exchange deposit, while the prior day’s Coinbase Prime transfers are not conclusive evidence of a sale because of the platform’s custody business.
Earlier movements have also involved fresh intermediary wallets. In July, about $288 million in seized bitcoin and ether was routed to Coinbase Prime, while a CoinDesk report on Wednesday described more than $100 million in BTC and BNB moving in a similar fashion. The reserve policy and destination of future transfers remain key details for assessing whether government movements change available market supply.
Frequently asked questions
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Where did the 12,267 BTC seized in the Bitfinex hack move?
The bitcoin moved from a government-linked seizure wallet to new, unlabeled addresses. No exchange deposit was recorded.
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Does the $1.01 billion bitcoin transfer indicate a government sale?
No exchange deposit was recorded for this transfer, making it more consistent with wallet reshuffling than a sale.
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What does the March 2025 executive order say about forfeited bitcoin?
It directs forfeited bitcoin into a Strategic Bitcoin Reserve and says it should not be sold.
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Why do the Coinbase Prime transfers not prove the government sold crypto?
Coinbase Prime provides custody as well as exchange services, so deposits there do not by themselves establish that assets were sold.
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How much crypto does the U.S. government still hold?
Arkham estimates the government holds about $25.5 billion worth of crypto.
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