US Government Transfers $606,000 in Bitcoin Linked 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 mastermind behind the decade-old hack of Bitfinex. According to on-chain data tracked by Arkham, these coins have a court-mandated destination. In early 2025, federal proceedings solidified the in-kind restitution of the seized assets to Bitfinex. The government is required to return the coins rather than liquidate them independently. Bitfinex plans to use the returned funds to redeem all outstanding Recovery Right Tokens and devote at least 80% of the remaining net proceeds to repurchasing and burning its UNUS SED LEO token. The 2016 hack saw Lichtenstein walk away with 119,756 BTC, worth roughly $72 million at the time. The exploit involved years of sophisticated money laundering via crypto mixers, darknets, and chain-hopping between coins. In 2022, investigators seized a portion of the stolen BTC, then worth $3.6 billion. Lichtenstein was sentenced to 60 months in federal prison in 2024 and was released in January 2026. The US government holds bitcoin valued at about $24.54 billion, ether at roughly $146 million, and several other cryptocurrencies.