US Government Transfers $606,000 in Bitcoin Linked 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 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 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 saw Lichtenstein steal 119,756 BTC, worth roughly $72 million at the time. The exploit involved 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 and was released in January 2026. The stolen coins remained in government custody until the recent transfer. The US government holds bitcoin valued at about $24.54 billion, ether at roughly $146 million, and several other cryptocurrencies.