With the transfer of around $606,000 in bitcoin to Coinbase Prime, the United States government has resumed its blockchain activity. Data monitored by Arkham indicates that the 8 BTC that were exchanged are associated with Ilya Lichtenstein, the individual responsible for the breach of the OG exchange Bitfinex that occurred 10 years ago.
The court-mandated destination of the bitcoin associated with the Bitfinex hack—from which Lichtenstein stole 119,756 BTC—is not the U.S. Treasury. Instead of selling the coins separately, the government was ordered to restore them to Bitfinex as part of the in-kind reparation deal that was struck in early 2025 via court procedures.
Not Necessarily Sell-Off
A common misconception is that transfers to exchanges indicate possible selling pressure. That being said, it might also be due to regular wallet transfers, custody changes, or other non-selling-related actions.
Bitfinex plans to spend the funds back to settle all outstanding Recovery Right Tokens, which are digital claims given to victims of the breach. With at least 80% of the remaining net proceeds, the exchange will buy back and destroy the UNUS SED LEO token.
Lichtenstein gained possession of 119,756 BTC after hacking into Bitfinex in August 2016 and illegally authorizing over 2,000 transactions. Roughly $72 million was the value of the exploit back then. (Its current value would be $8.9 billion)
After then, there was a long period of complex money laundering including the acquisition of gold, crypto mixers, darknets, and chain-hopping between currencies.
The culprits were apprehended in 2022, when the stolen Bitcoin was valued at $3.6 billion, and a part of it was confiscated. Thanks to President Trump on X, Lichtenstein was freed from federal jail in January 2026 after serving a 60-month term in 2024.
At $76,000, Bitcoin is encountering a thick sell wall, and traders are divided on whether to short the barrier or wait for a breakthrough above liquidation levels. At the time of writing, Bitcoin is trading at $75,580, up 1.32% in the last 24 hours as per data from CMC.