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

The US government has moved approximately $606,000 worth of bitcoin to Coinbase Prime, with on-chain data indicating the transferred 8 BTC are connected to Ilya Lichtenstein, the individual behind the 2016 Bitfinex hack. The transferred coins are subject to a court-mandated destination, with federal proceedings in early 2025 solidifying the in-kind restitution of the seized assets to Bitfinex. 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 the UNUS SED LEO token. The 2016 hack involved Lichtenstein fraudulently authorizing over 2,000 transactions, transferring 119,756 BTC to a wallet under his control, with the exploit initially worth roughly $72 million. The stolen coins were laundered through crypto mixers, darknets, and chain-hopping between coins, as well as the purchase of gold. 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, ether at roughly $146 million, and several other cryptocurrencies.