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

The US government has made a significant move 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 on-chain data, these coins have a court-mandated destination. In 2025, federal proceedings determined that the seized assets would be returned to Bitfinex in-kind, rather than being liquidated independently. Bitfinex plans to use the returned funds to fully redeem all outstanding Recovery Right Tokens and allocate at least 80% of the remaining net proceeds to repurchase and burn its UNUS SED LEO token. The 2016 hack involved Lichtenstein authorizing over 2,000 fraudulent transactions, resulting in the transfer of 119,756 BTC. The stolen coins were then 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.