- The US government transferred 8.2 BTC, worth about $606,000, to Coinbase Prime on Thursday.
- The moved funds were linked to Bitcoin seized in the 2016 Bitfinex hack case.
- Federal wallets still hold 328,361 BTC valued at roughly $24.6 billion.
The US government moved 8.2 BTC to Coinbase Prime on Thursday, sparking fresh talk over whether federal Bitcoin holdings are being sold.
On-chain data shows the transfer came from government-controlled wallets to a Coinbase Prime deposit address. At current prices, the moved coins were worth roughly $606,000.
The transfer size is small against total federal holdings, but any movement to an exchange-linked custodian draws attention because the US government remains one of the largest known BTC holders, as per Arkham data.
What Moved
The latest transfer involved BTC tied to assets seized in the 2016 Bitfinex hack case. Blockchain records show the coins were sent from federally labeled wallets to Coinbase Prime, a platform commonly used for custody, execution, and institutional transfers.
Separate Arkham Intelligence data also showed two earlier transactions from wallets labeled “US Government: Glenn Olivio Seized Funds.” Those wallets moved 2.438 BTC, worth about $177,000, to the same Coinbase address beginning with “3EMqu.”
This means multiple government-linked wallets recently sent BTC to the same Coinbase Prime destination.
Is the Government Selling?
The government might not necessarily be selling Bitcoin. Notably, transfers to Coinbase Prime do not automatically mean spot selling. Still, exchange-linked movements matter because coins sent from cold wallets to trading venues can become available for sale.
This comes after Treasury Secretary Scott Bessent said in January that the administration had halted sales of seized Bitcoin and was instead adding coins to the Strategic Bitcoin Reserve.
The policy followed criticism after earlier government transfers tied to the Samourai Wallet case also went to Coinbase Prime. The market is now watching whether these new transfers are operational moves or the start of liquidations.
Even after the latest movement, the US government still holds 328,361 BTC, worth about $24.6 billion. The 8.2 BTC transfer equals only a tiny fraction of that balance.
Bitfinex Case Background
The transferred coins were linked to the 2016 Bitfinex hack, one of crypto’s biggest early thefts. Hackers stole more than 119,000 BTC, worth around $72 million at the time. At current prices, that amount would be worth roughly $8.9 billion.
Authorities later seized about 94,636 BTC in February 2022 after accessing encrypted files belonging to Ilya Lichtenstein. Those files reportedly contained more than 2,000 private keys tied to the stolen funds. Lichtenstein was sentenced to five years in prison in November 2024.
Related: BlackRock Pulls $255M in Bitcoin as Funding Rates Stay Negative
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