The US government moved about 9,261 BTC worth $770 million to Coinbase Prime over two days, according to Galaxy Research. The Bitcoin transfer included seized assets tied to federal cases and 2,456 BTC from wallets not previously labeled as government holdings.
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According to Galaxy, about half of the Bitcoin was sourced from funds that were retrieved following the Bitfinex hack in 2016. Other coins were linked to previous seizures at Binance. However, the origin of 2,456 BTC was unknown.
Federal agencies had not confirmed a new seizure involving those 2,456 BTC. Galaxy said their transfer path suggests they may represent new law enforcement seizures.
What Did the US Government Move?
According to Galaxy, there was an estimated Bitcoin transfer of 834 BTC on October 6, and this was followed by another larger Bitcoin transfer on October 7. Altogether, these transfers brought the total Bitcoin transfers to approximately 9,261 BTC.
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A huge proportion of these was Bitcoin that was recovered after the Bitfinex hack. In 2022, more than 94,000 BTC were confiscated by federal officials after they obtained private keys for these stolen Bitcoin.
A federal court ordered the return of more than 94,000 BTC recovered to Bitfinex through the process of restitution. The main wallet containing 94,643 BTC was not transferred at all, according to Galaxy.
Why Did the Bitcoin Transfer Go to Coinbase Prime?
Coinbase Prime is meant for institutional trading, custody, and settlement. This implies that the destination is relevant in determining what the transaction means.
The US Marshals Service chose Coinbase Prime in 2024 for custody and trading of high-cap digital currencies. The transfer of the Bitcoin into this platform is not sufficient proof of any sales transaction.
Federal wallets did something similar in July, when they moved 3,940 BTC and 30,000 ETH to Coinbase Prime for a value of approximately $297 million.
Blockchain data is able to show when the assets are deposited into the address controlled by Coinbase. It will not be possible to confirm whether an internal Coinbase Prime trade occurred afterward.
How Do Strategic Bitcoin Reserve Rules Apply?
Donald Trump, President of the United States of America, established the Strategic Bitcoin Reserve by an executive order signed on March 6, 2025. According to the order, eligible Bitcoin transferred to the Strategic Bitcoin Reserve must not be sold.
This provision does not apply to all the coins under temporary control of federal agencies. Assets may be taken out of federal custody for restitution or other necessary actions.
In regard to the Bitfinex assets, restitution will serve as a mechanism to take the assets out of the government custody. Later, the White House stated that generally, reserve Bitcoin must not be sold, but it may be used for victim compensation or other legal requirements.
How Much Bitcoin Is Linked to Government Wallets?
Galaxy stated that the Coinbase Prime wallet used for the latest Bitcoin transfer had received around 11,567 BTC as of December 2025. Out of this amount, 6,406 BTC were received from government addresses, whereas 5,160 BTC were received from previously unmarked addresses.
Currently, Galaxy estimates that government addresses hold around 319,086 BTC. Out of this amount, around 127,271 BTC are associated with the Prince Group and LuBian cases, while 94,643 BTC have been marked as Bitfinex recovery.
The amount of 127,271 BTC is related to the Department of Justice forfeiture case. In its statement, the Department of Justice mentioned that these assets were already in federal custody before starting the civil action.
Some of the seized Bitcoins are still under the court orders, forfeiture process, or restitution claims. Therefore, federal custody doesn’t necessarily mean ownership by Strategic Bitcoin Reserve.
Did the Bitcoin Transfer Affect the Market?
The Bitcoin price is hovering close to $82,400, marking a decrease of approximately 1.2% within the last 24 hours. The daily trading price range remained between approximately $81,800 and $83,713, with the trading volume being approximately $34.1 billion.
It is important to note that there is no blockchain data to prove that the Bitcoin transaction led to the fall in prices. There was no disposal announcement or market sale made official. The Bitcoin transaction can be done for a number of reasons.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
