U.S. Government Sends $1 Billion in Seized Bitfinex Bitcoin to Unlabeled Wallets
By Unchained
AI summary of the source article
According to Arkham data, a wallet associated with the U.S. government's 2022 seizure of roughly 94,000 BTC from Ilya Lichtenstein and Heather Morgan sent 12,267 BTC—valued at about $1.01 billion—to new addresses. Most funds went to a single unlabeled address, and Arkham noted both transaction outputs were subsequently spent, with no exchange deposits recorded. The transfer followed a Wednesday move of approximately $119 million in USDT and bitcoin to Coinbase Prime from wallets tied to the Bitfinex, FTX, and Alameda seizures. A March 2025 executive order restricts sales of bitcoin placed in the Strategic Bitcoin Reserve, but it remains unconfirmed if these assets are designated for it.
Why it matters
The movement of over $1 billion in seized bitcoin highlights ongoing custody and potential liquidation actions by U.S. authorities, subject to a March 2025 executive order governing the Strategic Bitcoin Reserve.
Key facts
- A government-linked wallet moved 12,267 BTC worth roughly $1.01 billion to new, unlabeled addresses with no exchange deposits recorded.
- The funds originate from roughly 94,000 BTC seized in 2022 from Ilya Lichtenstein and Heather Morgan connected to the 2016 Bitfinex hack.
- A day prior, government-linked wallets sent around $119 million in USDT and bitcoin tied to Bitfinex, FTX, and Alameda seizures to Coinbase Prime.