Activity in Bitcoin (BTC) Controlled by the US Government: Moved to Coinbase! “Not for Sale!”

According to Onchain data, the US government transferred $606,000 worth of Bitcoin (BTC) linked to the 2016 Bitfinex hack to Coinbase.

This BTC transfer follows previous cryptocurrency transfers made by the US government in March and April. According to Arkham data, this transfer was made from wallets under federal government control.

While it’s generally assumed that Bitcoins transferred to exchanges are for sale, it’s stated that this particular BTC transfer was not for sale purposes.

Because in early 2025, federal proceedings have confirmed that the Bitcoins seized in connection with the Bitfinex hack will be returned to Bitfinex in full.

This requires the US government to return the seized Bitcoins to Bitfinex in full.

Bitfinex has decided what to do with these Bitcoins. The exchange states that a portion of these funds will be used to fully repurchase all outstanding Recovery Right Tokens (RRT) altcoins.

It is also stated that at least 80% of the remaining net proceeds will be used to repurchase and burn UNUS, SED, and LEO tokens.

What is the Bitfinex Hack Incident?

The Bitfinex hack, which occurred on August 2, 2016, was one of the biggest shocks to the cryptocurrency sector.

Hacker Ilya Lichtenstein exploited a vulnerability in Bitfinex’s multi-signature wallet system and stole over 119,000 Bitcoin, worth approximately $72 million at the time.

Based on today’s prices, which are approximately $74,000 per Bitcoin, the stolen Bitcoins would be worth around $8.9 billion.

*This is not investment advice.

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