The U.S. government moved more than $1 billion in Bitcoin linked to the 2016 Bitfinex hack. The transaction involved 12,267 BTC and occurred on Wednesday, according to Arkham Intelligence data. The movement sparked attention across crypto markets because of the size and origin of the funds. However, the transfer does not show that authorities sold the Bitcoin.
The funds trace back to the theft of 119,754 BTC from Bitfinex in 2016. U.S. authorities later recovered more than 94,000 BTC connected to the stolen assets. Arkham currently tracks around 306,795 BTC across wallets it attributes to the U.S. government.
Transfer Does Not Confirm a Sale
Government agencies can move seized Bitcoin for several reasons, including custody and legal procedures. Hence, the latest transaction alone provides no evidence of market selling.
Additionally, another government-linked wallet moved 834 BTC to Coinbase Prime on October 6. That transaction involved approximately $71.6 million worth of Bitcoin.
Moreover, the latest movement comes as investors watch Washington’s plans for its Bitcoin holdings. President Donald Trump established a Strategic Bitcoin Reserve through an executive order in March 2025.
The order directs the government to retain reserve Bitcoin rather than sell it. Besides, it calls for strategies to acquire additional Bitcoin without increasing taxpayer costs.
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