Government-linked wallets moved 12,267 BTC — roughly $1.01 billion — seized in connection with the 2016 Bitfinex hack to a new, unlabeled address on Thursday, according to blockchain analytics firm Arkham.

The transfer settled in a single transaction at 9:33 a.m. ET. Nearly the entire amount landed at an address with no prior labeling, while a nominal 0.0012 BTC went to a second wallet. Arkham's data flags both outputs as already spent, meaning the coins have moved again since the initial transfer.

The destination was not an exchange. That distinction matters: wallet-to-wallet movements are not, on their own, evidence of a sale. The coins form part of approximately 94,000 BTC that the U.S. government seized in 2022 from Ilya Lichtenstein, who orchestrated the Bitfinex hack, and his wife, Heather "Razzlekhan" Morgan.

Is the government selling?

Thursday's move follows a pattern of activity that has kept analysts watching. On Wednesday, government-linked wallets sent about $119 million in USDT to Coinbase Prime, along with roughly 2,574 BTC, worth around $215 million, routed through intermediary addresses, per Arkham.

In July, the government shifted $288 million in seized crypto to Coinbase Prime. In April, as Decrypt reported, it moved a small batch of about 8.2 BTC from the same Bitfinex seizure to the same venue.

Deposits to Coinbase Prime do not confirm liquidation, because the institutional platform also provides custody services to government clients. Still, the frequency of transfers has intensified speculation about disposition plans for the holdings.

What governs the government's Bitcoin?

The legal framework shifted in March 2025, when President Donald Trump signed an executive order directing forfeited Bitcoin into a Strategic Bitcoin Reserve that would not be sold.

In August, Treasury Secretary Scott Bessent walked back earlier comments suggesting the government would not buy more Bitcoin, saying it would explore budget-neutral ways to add to the reserve.

Before the order, a federal court in January 2025 cleared the way for the sale of $6.5 billion in Bitcoin seized from the Silk Road marketplace — a ruling that established the government's ability to liquidate forfeited crypto when policy permits.

The reserve framework now constrains that option for Bitcoin specifically, which raises the question of why the Bitfinex-linked coins are moving at all. Possible explanations include custody consolidation, wallet restructuring or preparation for eventual disposition under whatever terms the Justice Department and Treasury settle on.

How much does Washington still hold?

The government retains approximately 306,795 BTC, worth roughly $24.85 billion with Bitcoin trading near $81,000, according to Arkham's figures.

That makes the U.S. government one of the largest single holders of Bitcoin in the world, and its wallet activity functions as a market-structure variable in its own right. Every large transfer from the Bitfinex seizure — still the largest crypto hack recovery in history — draws scrutiny over whether the coins are heading toward custody, an exchange or an eventual sale.

For now, no sale is confirmed. But with the Strategic Bitcoin Reserve's operating rules still being defined, and the Treasury openly discussing budget-neutral acquisition strategies, the movement of seized assets between government-controlled addresses will remain a signal the market watches closely in the months ahead.