Wallets linked to the United States government transferred more than $1.8 billion in cryptocurrency over a 72-hour span in early October 2026. The activity included approximately 9,261 bitcoin valued at $770 million sent to Coinbase Prime on consecutive days, followed by a single transfer of 12,267 bitcoin worth roughly $1.01 billion, along with $94.15 million in tether.

Blockchain analytics firms tracked the flows from addresses associated with the Department of Justice and related forfeiture cases. The largest single movement involved assets recovered from the 2016 Bitfinex exchange hack. Separate transfers included bitcoin from previously unlabeled wallets and stablecoins tied to the collapsed FTX platform.

Details of the Multi-Day Transfers

On the first day, government-linked wallets moved 834 bitcoin. The following day saw a far larger outflow of 8,428 bitcoin, bringing the two-day total to 9,261 bitcoin valued at approximately $770 million at prevailing prices. Galaxy Research identified nearly half of those coins as originating from Bitfinex-related recoveries, with additional amounts linked to exchange seizures and 2,456 bitcoin from addresses that had not previously been publicly associated with federal holdings.

The next day, a wallet tagged to Bitfinex recovery assets sent 12,267.02 bitcoin, valued at about $1.01 billion, to new addresses. Some on-chain trackers reported portions of the larger sum reaching Coinbase Prime deposit addresses. Concurrently, wallets connected to FTX sent a small test amount of tether followed by a main transfer of 94.149 million USDT, valued at $94.15 million, directly to a Coinbase Prime address. Minor test transactions in ethereum and bitcoin also appeared in the sequence.

Combined, the reported activity totaled roughly $1.87 billion in cryptocurrency movements. Coinbase Prime, selected by the U.S. Marshals Service for custody and potential trading of large-cap digital assets, received a substantial share of the flows. The government’s primary Coinbase Prime deposit address has accumulated more than 11,000 bitcoin since becoming active in late 2025.

Origins of the Moved Assets

The bulk of the largest transfer traces to bitcoin recovered after the 2016 Bitfinex hack, in which roughly 120,000 bitcoin were stolen. Federal authorities later recovered more than 94,000 bitcoin in the case. In January 2025 a federal court approved the return of recovered assets to Bitfinex in kind, distinguishing those coins from ordinary government forfeitures eligible for a strategic reserve.

Other portions of the multi-day activity involved assets from various criminal seizures, including previously untracked wallets that deposited into known government Coinbase Prime addresses. Separate holdings linked to the Lubian case and other forfeitures form a significant share of the overall federal inventory but were not the sole source of the recent outflows.

Strategic Reserve Policy and Custody Considerations

In March 2025 an executive order established a Strategic Bitcoin Reserve and stated that bitcoin deposited into the reserve shall not be sold. The order permits exceptions for court-directed distributions or returns to verified victims of criminal activity. Assets subject to restitution orders, such as the Bitfinex recoveries, fall outside the pure “do not sell” category applicable to settled government property.

Transfers to Coinbase Prime provide institutional custody and trading capability but do not by themselves confirm an intention to liquidate. Past movements of seized bitcoin to the platform have sometimes preceded sales and at other times reflected administrative consolidation. No official confirmation of any sale arising from the October transfers has been issued by the Department of Justice or the U.S. Marshals Service.

Market Context

Bitcoin traded near $81,300 during the period of the largest transfer, registering a decline of roughly 3 percent on that day within a broader pullback already under way. Rising Treasury yields and higher oil prices contributed to pressure on risk assets. The coincidence of large government outflows with the price move fueled discussion of potential supply effects, though daily trading volumes far exceed the amounts transferred and no confirmed sales were recorded on the blockchain.

Federal wallets have historically both acquired and disposed of bitcoin through seizures and occasional auctions or sales. Since 2020 the pattern has shifted toward greater retention of confiscated assets rather than immediate disposal. The latest series of transfers continues that longer-term evolution while leaving the ultimate disposition of the moved coins unresolved pending further on-chain activity or official statements.