US Government Moves Bitcoin Tied to $9 Billion Bitfinex Hack

In brief

• Blockchain data shows the U.S. government transferred more than $600,000 worth of Bitcoin connected to the 2016 Bitfinex hack.
• The funds were transferred from a government account to Coinbase Prime, potentially ahead of a sale of the funds.
• The BTC is connected to the more than $9 billion, or 94,000 BTC which was seized from the Bitfinex hacker.

Bitcoin holdings linked to the $9 billion hack of crypto exchange Bitfinex in 2016 was on the move Thursday, as addresses connected to the U.S. government transferred around 8.2 BTC to Coinbase Prime, according to data from Arkham Intelligence. 

The coins, now valued around $628,000, last moved 2 years ago when a different U.S. government address transferred them to the wallet that was labeled by Arkham as “Bitfinex hacker seized funds.”

A representative for the Department of Justice did not immediately respond to Decrypt’s request for comment seeking confirmation about the coins’ connection to Bitfinex or why the funds may have been moved. 

When crypto assets are moved to an exchange, it is often viewed as the precursor to a sale. However, the government’s intentions for the recently transferred BTC remain unknown at this time. 

The transferred Bitcoin represents just a small fraction of the more than 94,000 Bitcoin seized by the U.S. government as part of its investigation and arrest of Ilya Lichtenstein and partner Heather “Razzlekhan” Morgan for their roles related to the hack and subsequent laundering of stolen funds. Those seized funds are worth more than $7.2 billion now. 

Lichtenstein, the theft’s orchestrator, exploited a security vulnerability on the crypto exchange that led to the heist of 119,754 BTC—or $9.18 billion worth at today’s prices. Arrested in 2022 on conspiracy to commit money laundering, he later pleaded guilty to the charges in 2023. He was sentenced to five years in prison for money laundering in 2024.