US Government Transfers $606,000 in Bitcoin Tied to 2016 Bitfinex Hack to Coinbase

The US government has been active on the blockchain, transferring approximately $606,000 worth of bitcoin to Coinbase Prime. The transferred 8 BTC are linked to Ilya Lichtenstein, the individual behind the 2016 Bitfinex hack. According to court proceedings, the seized assets will be returned to Bitfinex in-kind, rather than being liquidated. The returned funds will be used to fully redeem outstanding Recovery Right Tokens and allocate at least 80% of the remaining net proceeds to repurchase and burn UNUS SED LEO tokens. The 2016 hack involved Lichtenstein fraudulently authorizing over 2,000 transactions, transferring 119,756 BTC. The stolen coins were laundered through various means, including crypto mixers and darknets. In 2022, investigators seized a portion of the stolen BTC, and in 2024, Lichtenstein was sentenced to 60 months in federal prison. The US government currently holds bitcoin valued at approximately $24.54 billion, as well as other cryptocurrencies.