US government sends $1 billion in seized Bitcoin to new wallets and Coinbase

The US government on Thursday moved 12,267 Bitcoin, worth more than $1 billion at the time, from a wallet tied to the 2016 Bitfinex hack seizure, according to data tracked by Arkham Intel. About $517 million of the total was moved to Coinbase Prime.

Arkham reported yesterday that US government-linked wallets sent about $470 million worth of BTC, WBTC and USDT to addresses believed to belong to Coinbase Prime earlier this week.

THE US GOVERNMENT JUST MOVED $470 MILLION

The US Government just moved $470M of BTC, WBTC and USDT to likely Coinbase Prime deposit addresses.

This is Bitcoin that had been seized from both the Bitfinex Hacker and Alameda Research. pic.twitter.com/2kVoqirOeB

— Arkham (@arkham) October 7, 2026

The US government’s Bitcoin stash has fallen by about 6.5% since the end of 2025. At the time of publication, the government still controlled about 307,000 BTC, valued at $25 billion at current market prices.

The transfers fueled speculation that the US government could be preparing to sell Bitcoin, with the largest crypto asset falling below $81,000 following wallet activity.

Social-media sentiment leaned bearish, as traders focused on the Coinbase Prime deposits and viewed them as potential selling pressure regardless of the government’s intent. There is no confirmed sale linked to the recent movements.

Another interpretation is that the transfers were related to custody or administrative activity rather than liquidation. Coinbase Prime provides custody services for the US Marshals Service, which manages seized assets, meaning a transfer to the platform does not necessarily signal an imminent sale.

The January 2025 executive order establishing the Strategic Bitcoin Reserve directed the government to retain seized Bitcoin rather than sell it, except when sales are required for restitution or other lawful purposes. No official announcement has indicated a change to that policy.

This is a developing story.