US Government Moves Over $1.7 Billion in Seized Bitcoin in Two-Day Flurry of Transfers

The U.S. government executed a series of large bitcoin transfers over two days, moving a combined total exceeding $1.77 billion worth of seized cryptocurrency. In the first wave, government-linked wallets sent 9,261 BTC, worth approximately $770 million, to Coinbase Prime, the custody platform used by the U.S. Marshals Service since 2024. Galaxy Research, which tracked the flows on-chain, noted that roughly half of those coins originated from assets recovered in the 2016 Bitfinex hack, another portion came from known Binance-related seizures, and an additional 2,456 BTC arrived from previously unidentified holdings, suggesting possible new law enforcement seizures.

The following day, wallets tied to the Bitfinex hack recovery moved another 12,267 BTC, worth about $1.01 billion, to new unlabeled addresses with no exchange deposit recorded. Blockchain intelligence firm Arkham, which tracked the second transaction, said the destination wallets were unidentified, pointing to internal reshuffling rather than an imminent sale. Coinbase Prime also functions as a custody provider, meaning even transfers there do not necessarily indicate liquidation.

A March 2025 executive order directs that forfeited bitcoin be placed into a Strategic Bitcoin Reserve and not be sold. The U.S. government is estimated to hold approximately 328,372 BTC in total, valued at roughly $25.5 billion, accumulated through criminal seizures and investigations. The Department of Justice and U.S. Marshals Service had not responded to requests for comment at the time of reporting.