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US government moves $1.01 billion in Bitcoin from Bitfinex hack wallet
A wallet labeled as seized Bitfinex hack funds sent 12,267.02 BTC to new unlabeled addresses, a day after separate transfers to Coinbase Prime
On October 8, 2026, a government wallet tagged as holding funds seized from the 2016 Bitfinex hack sent 12,267.02 BTC to new, unlabeled addresses, according to blockchain analytics platform Arkham. The transfer was worth approximately $1.01 billion.
None of the coins landed on an exchange.
What moved, and where it went
The source wallet carries the Arkham label ‘Seized Bitfinex Hack Funds,’ a recognized US government address. The 12,267.02 BTC went to addresses that have no public label yet, which means nobody outside the government can say for certain who controls them.
The day before, wallets tied to both Bitfinex and FTX sent approximately 3,200 BTC, valued around $264 million, plus $119 million in USDT to Coinbase Prime deposit addresses.
Coinbase Prime is the institutional arm of Coinbase, offering custody and trading services to large clients.
The Bitfinex backstory
The 2016 Bitfinex hack remains one of the largest thefts in crypto history. A total of 119,754 BTC was taken from the exchange.
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The US government now controls an estimated 94,000+ BTC linked to that breach. Total government digital asset holdings are estimated at approximately $25.5 billion.
A March 2025 executive order established a Strategic Bitcoin Reserve, directing forfeited Bitcoin into long-term government holdings rather than auctions or market sales.
What this means for the market
The October 8 transfer did not touch an exchange, which is consistent with a retention strategy rather than a liquidation.
The approximately 3,200 BTC and $119 million in USDT sent to Coinbase Prime came from wallets tied to both Bitfinex and FTX. The executive order governs forfeited Bitcoin specifically, and stablecoins like USDT fall outside a Bitcoin-specific reserve entirely. The public data does not show which category these transfers fall into.
If the newly funded addresses stay dormant, the October 8 transfer will look like custody management in service of a long-term reserve. If those coins start flowing toward exchange deposit addresses, the market will need to recalibrate. With an estimated 94,000+ BTC tied to the hack under government control, more transfers seem plausible as custody arrangements evolve.