Wallets associated with the US government transferred 833.6 bitcoins, valued at over $71 million, on October 6. This first movement in six weeks concerns funds seized in the Bitfinex and HashFlare cases, but no data confirms their sale.
In brief
- The US government transferred 833.6 BTC, or over $71 million.
- The bitcoins come from the Bitfinex and HashFlare businesses.
- A portion of Bitfinex funds could be returned to the platform.
- BTC linked to HashFlare could be used to compensate victims.
- Transfer to Coinbase Prime does not confirm any sales at this point.
US government bitcoin moves after six weeks
The transactions were detected on the blockchain after a period of inactivity dating back to August 26. The bitcoins come from two separate legal proceedings, the restitution rules of which are not identical.
A small transaction was also sent to Coinbase Prime. This test immediately fueled speculation about a liquidation, while a transfer to a depository may simply meet a need for conservation or reorganization.
THE movements observed are distributed as follows:
- Around 264.86 BTC came from funds recovered after the 2016 Bitfinex hack;
- A second batch of 568 BTC is linked to the HashFlare mining platform fraud;
- A test transfer of 0.00115539 BTC was made to Coinbase Prime;
- The government still holds more than 323,000 BTC, according to estimates from on-chain tracking platforms.
The amount moved represents approximately 0.26% of these estimated holdings. Its importance is therefore more due to the identity of the holder and the uncertainty surrounding the destination of the funds than to its weight in American reserves.
Bitfinex bitcoins could be returned
The first batch is associated with the Bitfinex hack. In August 2016, a hacker stole 119,754 BTC from the platform. The US Department of Justice recovered more than 94,000 BTC in 2022 during the arrest of Ilya Lichtenstein and Heather Morgan.
Court decisions have since provided for a return in kind of a portion of the bitcoins to Bitfinex. The 264.86 BTC transferred could therefore be part of this procedure, rather than a sale on the market. This interpretation nevertheless remains to be confirmed by the authorities or the platform.
A previous movement reinforces this hypothesis. As of April 2026, approximately 8.2 BTC from the same deal had already been transferred to Coinbase Prime.
On-chain analyst Sani believes that the small operation observed before the main move constitutes “most likely a test transaction before sending all remaining coins”. This statement describes a plausible technical scenario, but does not establish the final destination of the bitcoins.
HashFlare’s 568 BTC could fund victims
The second transfer comes from assets confiscated in the HashFlare affair. Founders Sergei Potapenko and Ivan Turogin were prosecuted for fraud involving more than $575 million.
HashFlare marketed remote mining contracts. According to the American indictment, the company actually had less than 1% of the computing power it claimed to exploit. The two entrepreneurs had also raised at least $25 million for Polybius, a digital bank that was never created.
The Department of Justice has initiated proceedings intended to compensate the victims. He specified in September that its launch would depend in particular on the liquidation of confiscated assets.
The movement of the 568 BTC could thus prepare for their conservation by a service provider or a future conversion into dollars. However, it does not prove that the liquidation has already taken place. Confirmation would require an official release, an identifiable entry on a sales platform or a subsequent transaction to a market address.
No movement yet confirms a sale
Coinbase Prime provides custody and trading services for institutions. The company also secured a contract with the US Marshals Service to handle certain confiscated digital assets. A deposit with this entity therefore does not automatically mean that the bitcoins will be sold.
American policy adds another nuance. Washington has created a strategic reserve intended to keep permanently confiscated bitcoins, but not all assets controlled by the courts necessarily follow this regime. Some must be returned to their owners or liquidated in order to compensate victims.
The next movements will make it possible to clarify the objective of these operations. A transfer to market wallets would support the hypothesis of a sale, while a safekeeping address or a return to Bitfinex would support the hypothesis of a restitution. In the meantime, presenting the $71 million as a liquidation of the US government would be premature.
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