U.S. government moves $1 billion in bitcoin from Bitfinex hack wallet, no sale indicated
The U.S. government has transferred $1 billion in Bitcoin seized from the 2016 Bitfinex hack to new, unlabeled wallets. Analysts suggest this movement is likely internal wallet reshuffling rather than an immediate intent to sell the assets.
Why it matters
Large movements of government-seized crypto assets are closely monitored by markets due to their potential impact on Bitcoin price volatility.
The coins left a wallet holding funds seized in the 2016 Bitfinex hack and went to a new, unlabeled address, with a second transaction going to a different address. No exchange deposit was recorded, a pattern more consistent with wallet reshuffling than a sale.
The transfer follows heavier exchange-bound activity 24 hours earlier, when roughly 3,200 BTC (about $264 million) and $119 million in USDT landed at Coinbase Prime deposit addresses. The funds came from wallets tied to the FTX/Alameda and Bitfinex seizures, according to Arkham’s identification.
CoinDesk reported on Wednesday that more than $100 million in BTC and BNB moved in a similar fashion. In July, about $288 million in seized bitcoin and ether was routed to Coinbase Prime via fresh intermediary wallets.
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