The US government transferred 8,428 bitcoin to Coinbase Prime on Wednesday, marking its largest single-day bitcoin movement since December 2, 2024. Data from Galaxy Research ranked the transaction as the ninth largest US government bitcoin outflow since 2013.
Major BTC transfers follow Bitfinex hack recovery and unlabelled sources
An additional 834 BTC moved on Tuesday, bringing the two-day total to 9,261 BTC, valued at approximately $770 million. Galaxy Research indicated that almost half of these bitcoins came from assets recovered in relation to the 2016 Bitfinex hack. Binance-sourced seizures accounted for another significant portion.
Analysis of Galaxy’s flow chart shows that three Bitfinex recovery wallets transferred 4,239 BTC. Two exchange-related seizure wallets sent another 1,227 BTC. The remaining 3,796 BTC originated from five wallets without any public label, including 2,456 BTC from a single unidentified address.
Mini dictionary: Galaxy Research, a division of Galaxy Digital, specializes in crypto market analysis and blockchain data, providing insights into digital asset flows, institutional activity, and market structure.
Galaxy Research highlighted, “But 2,456 BTC came from previously unknown holdings, which we now assume were USG seizures because they deposited into the USG Coinbase Prime deposit address.”
For each sender, the transaction pattern remained consistent. A small test amount was first sent to the deposit address, followed by the main sum sent to a one-time-use address, which was quickly consolidated.
Typically, between one to three blocks later, Coinbase Prime moved the received BTC into its operational wallets. The government’s Coinbase Prime deposit address, active since December 2025, has received a total of 11,567 BTC so far.
Federal bitcoin holdings: Lubian and Bitfinex dominate
According to Galaxy Research, the US government currently holds around 319,086 BTC, while government-controlled wallets peaked at 352,587 BTC in August 2024. Of this, 71% remains technically unsettled government property due to ongoing legal action or pending return to victims.
A significant portion, 127,271 BTC, relates to the case against the Lubian mining pool operated by Chen Zhi. In October 2025, the Department of Justice filed for civil forfeiture of these assets. Another 94,643 BTC comes from the Bitfinex hack, with the primary wallet yet to be moved as of the report’s release.
The Justice Department previously received court approval to return the Bitfinex-related bitcoins directly to the exchange.
Coinbase Prime, an institutional digital asset platform, provides custody and trading solutions for seized government assets on behalf of the US Marshals Service. A deposit at Coinbase Prime does not necessarily signal an asset sale.
President Donald Trump issued an executive order on March 6, 2025, requiring that all bitcoin deposited into the Strategic Bitcoin Reserve remain unsold. The order allows for exceptions if assets are released by court order or returned to verifiable victims of criminal activity.
Other notable transfers include 57.55 BTC linked to Samourai Wallet, which reached a Coinbase Prime address last November. The White House confirmed in January that these coins were not liquidated. Similarly, 2.438 BTC seized from Glenn Olivio was moved to Coinbase in April.
Trend of government BTC handling shifts over time
Galaxy Research records show a total of 6,134 government bitcoin transactions since 2013. Excluding internal transfers, the government acquired 555,260 BTC and disposed of 236,173 BTC.
Between 2013 and 2015, the US Marshals Service auctioned bitcoin seized from Silk Road. Since 2020, however, federal agencies have retained a larger share of seized bitcoins instead of auctioning them, reflecting a shift in government strategy.
| Period | BTC Acquired | BTC Disposed | Disposition Method |
|---|---|---|---|
| 2013-2015 | High | High | Auctions (Silk Road) |
| 2020–2026 | Higher | Lower | Seizure and retention |
