The U.S. government is energetic on the blockchain once more, transferring roughly $606,000 value of bitcoin to Coinbase Prime.
These should not simply any cash. On-chain information suggests the transferred 8 BTC are linked to Ilya Lichtenstein, the man behind the decade-old hack of the OG alternate Bitfinex, according to data tracked by Arkham.
Transfers to exchanges are sometimes interpreted as an indication of potential promoting stress. However, that isn’t at all times the case and will additionally mirror routine pockets actions, custody adjustments, or different non-selling exercise.
These cash have vacation spot
The bitcoin tied to the Bitfinex hack, which noticed Lichtenstein stroll away with 119,756 BTC, has a court-mandated vacation spot and it isn’t U.S. Treasury.
In early 2025, federal proceedings solidified the in-kind restitution of the seized property to Bitfinex, requiring the government to return the cash somewhat than liquidate them independently.
Bitfinex intends to use the returned funds to absolutely redeem all excellent Recovery Right Tokens – digital claims issued to prospects who suffered losses in the hack – and to allocate at the very least 80% of the remaining internet proceeds to repurchase and burn its UNUS SED LEO token.
The 2016 hack
In August 2016, Lichtenstein hacked into Bitfinex and fraudulently approved greater than 2,000 transactions, transferring 119,756 BTC to a pockets below his management. At that point, the exploit was value roughly $72 million. (As of as we speak, it will be value $8.9 billion)
What adopted had been years of subtle cash laundering by way of crypto mixers, darknets, and chain-hopping between cash, in addition to the buy of gold.
Finally, in 2022, investigators caught up and seized a portion of the stolen BTC, then value $3.6 billion. In 2024, Lichtenstein was sentenced to 60 months in federal jail and was launched in January 2026 below the First Step Act, thanking President Donald Trump on X.
The stolen cash, nevertheless, remained in government custody. The U.S. stated final yr that its holdings of seized BTC would kind a part of a nationwide strategic bitcoin reserve. As of writing, the government holds bitcoin valued at about $24.54 billion, ether at roughly $146 million, and several other different cryptocurrencies.
