The US government has moved approximately $606,000 worth of Bitcoin, linked to the 2016 Bitfinex hack, to an address associated with Coinbase Prime. Blockchain data from Thursday, April 16, 2026, confirms the transfer originated from a wallet controlled by federal authorities.
This movement is part of the ongoing management of assets seized from Ilya "Dutch" Lichtenstein and his wife, Heather Morgan. The couple was responsible for laundering the proceeds of the 2016 hack, which initially saw 119,756 BTC (worth ~$72 million at the time) stolen from the cryptocurrency exchange. In February 2022, federal agents seized approximately 94,636 BTC from the pair after accessing encrypted files containing private keys.
The transfer follows a federal court order from early 2025 that mandates in-kind restitution, requiring the government to return the recovered Bitcoin directly to Bitfinex rather than liquidating it. Bitfinex has committed to using returned funds to fully redeem all outstanding Recovery Right Tokens issued to affected customers. Furthermore, the exchange plans to allocate at least 80% of any remaining net proceeds to repurchase and burn its native UNUS SED LEO (LEO) tokens.
As of April 2026, US government-controlled wallets hold a massive 328,361 BTC, valued at roughly $24 billion, alongside other seized cryptocurrencies. Officials have previously indicated these holdings could form part of a national strategic Bitcoin reserve. The recent $606,000 transfer represents a minor portion of this total stash and is viewed as a step in the process of returning assets to Bitfinex as per the court order.
