US Government Moves Over $1 Billion in Seized Bitcoin to Coinbase Prime
US Government Transfers $1 Billion in Bitcoin Hours After $770M Move
The US government moved more than 12,267 Bitcoin worth over $1 billion to a Coinbase Prime wallet on Wednesday, just hours after transferring another $770 million in Bitcoin to the same type of account. Blockchain data from the Arkham Explorer showed the transaction originated from a wallet linked to the recovery of funds from the 2016 Bitfinex hack.
Coinbase Prime is a cryptocurrency custody service that stores digital assets on behalf of institutions and governments. The recipient address for the latest transfer could not be identified at the time of publication.
Key Transfer Details
- A US government wallet transferred over 12,267 Bitcoin, valued at more than $1 billion at publication time
- The transfer came hours after a separate government move totaling $770 million in Bitcoin to a Coinbase Prime wallet
- Arkham Research linked the sending wallet to funds recovered from the 2016 Bitfinex hack, in which hackers stole 119,756 Bitcoin
- The identity of the Coinbase Prime account receiving the funds was unknown
Government Response Sought
Cointelegraph contacted the US Marshals Service and the Department of Justice for comment on the Bitcoin transfers to Coinbase Prime but did not receive an immediate response.
Larger Government Bitcoin Holdings
Estimates suggest the US government held approximately 328,372 Bitcoin as of 2026, accumulated from assets seized during criminal cases and investigations. In March 2025, President Donald Trump signed an executive order creating a strategic Bitcoin and cryptocurrency reserve. However, lawmakers are still working to turn that executive order into binding law.
Why This Matters for Crypto Markets
Large-scale government sales or transfers of seized Bitcoin have historically drawn market attention. The pace of these recent moves — two major transfers within hours — signals continued activity around the government's cryptocurrency holdings, even as Congress debates the legal framework for managing them.
What Is Confirmed
- The transfer of over 12,267 Bitcoin occurred on Wednesday and was recorded on-chain
- Arkham Research identified the source wallet as tied to Bitfinex hack recovery funds
- The government has an estimated 328,372 Bitcoin in custody
What Remains Unclear
- The identity of the recipient wallet remains unknown
- The purpose of the transfers has not been officially explained by US Marshals or the DOJ
- It is unclear whether these transfers signal imminent sales or routine custodial reorganization
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.