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

The US government has transferred approximately $606,000 worth of bitcoin to Coinbase, with on-chain data indicating the 8 BTC are linked to Ilya Lichtenstein, the individual behind the 2016 Bitfinex hack. This transfer is not expected to result in immediate selling pressure, as the coins have a predetermined destination. In 2025, federal proceedings mandated the in-kind restitution of seized assets to Bitfinex, requiring the government to return the coins rather than liquidate them. The returned funds will be used to redeem all outstanding Recovery Right Tokens and allocate at least 80% of remaining net proceeds to repurchase and burn the UNUS SED LEO token. The 2016 hack saw Lichtenstein steal 119,756 BTC, worth roughly $72 million at the time, and involved sophisticated money laundering techniques. The stolen coins were eventually seized by investigators in 2022, and Lichtenstein was sentenced to 60 months in federal prison in 2024. The US government holds bitcoin valued at approximately $24.54 billion, as well as other cryptocurrencies, as part of a national strategic reserve.