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- A U.S. government-linked wallet moved 12,267 Bitcoin worth about $1.01 billion on Oct. 8 to new, unlabeled addresses.
- The transaction does not show that the government sold the Bitcoin, and federal agencies did not publicly explain the move.
- The transferred Bitcoin is linked to funds recovered from the 2016 Bitfinex hack involving Ilya Lichtenstein.
A U.S. government-linked wallet moved 12,267 Bitcoin worth about $1.01 billion on Oct. 8, shifting funds tied to the 2016 Bitfinex hack into new, unlabeled addresses. The transaction does not show that the government sold the Bitcoin, and neither the Treasury Department nor the Justice Department had publicly explained the move.
Bitfinex Bitcoin Moves to Unlabeled Wallets
Blockchain data tracked by Arkham Intelligence showed the Bitcoin leaving a wallet associated with U.S. government holdings at about 9:33 a.m. ET. Nearly all the 12,267 BTC initially went to a new unlabeled address, with a small amount sent separately.
The funds were subsequently moved again, but the identified destinations were not labeled as cryptocurrency exchanges. That leaves several possibilities open, including custody changes, internal wallet management or movement connected to the underlying Bitfinex case.
Other government-controlled crypto has also moved toward platforms such as Coinbase Prime in previous transactions. A transfer to an institutional platform would not by itself prove a sale because such services can also provide custody and settlement infrastructure.
Coins Trace Back to 2016 Bitfinex Hack
The Bitcoin is linked to funds recovered from the Bitfinex hack, in which 119,754 BTC was stolen in 2016. Federal authorities seized more than 94,000 BTC in 2022 after investigators obtained private keys connected to wallets controlled by Ilya Lichtenstein. Then-Deputy Attorney General Lisa Monaco described the recovery as the Justice Department’s largest financial seizure at the time.
“Cryptocurrency is not a safe haven for criminals.”
Lichtenstein later pleaded guilty to money laundering conspiracy and received a five-year prison sentence in 2024. The government has continued managing crypto connected to the case since the original seizure.
Transfer Does Not Confirm a Government Sale
The movement comes under a federal policy framework created in March 2025 for government-held Bitcoin. President Donald Trump’s executive order established a Strategic Bitcoin Reserve and generally bars sales of Bitcoin once it has been placed into that reserve.
Seized assets can still be handled according to applicable forfeiture, restitution, and court requirements before or instead of reserve treatment. The Bitfinex-linked transfer therefore cannot be classified as a reserve sale based on blockchain activity alone.
Government-Linked Wallets Hold Large Bitcoin Balance
Arkham estimated that wallets it labels as linked to the U.S. government held more than 300,000 BTC after the latest movements, though not all of that Bitcoin may be legally available for reserve use. Some holdings can remain subject to forfeiture proceedings, restitution claims or other legal obligations.
The destination of the 12,267 BTC remains the main unresolved point. Until the coins reach an identified exchange or the government explains the transaction, the movement establishes a transfer of seized Bitcoin rather than a confirmed liquidation.
