The U.S. government has transferred approximately $606,000 worth of bitcoin, specifically 8 BTC, to Coinbase Prime. This transfer is linked to Ilya Lichtenstein, who was convicted for his role in the 2016 hack of the cryptocurrency exchange Bitfinex.
On-chain data indicates that these coins are associated with Lichtenstein, who, in 2016, executed a fraudulent scheme that resulted in the theft of 119,756 BTC, valued at roughly $72 million at the time. The current value of the stolen bitcoins is approximately $8.9 billion.
In early 2025, federal proceedings mandated that the seized assets be returned to Bitfinex as part of an in-kind restitution agreement. This legal framework requires the government to return the bitcoins rather than liquidate them for cash.
Bitfinex plans to utilize the returned funds to fully redeem all outstanding Recovery Right Tokens, which are digital claims issued to customers who incurred losses during the hack. Additionally, the exchange intends to allocate at least 80% of the remaining net proceeds to repurchase and burn its UNUS SED LEO token.
The hack, which took place in August 2016, involved Lichtenstein fraudulently authorizing over 2,000 transactions, leading to significant financial losses for Bitfinex and its customers. Following years of complex money laundering efforts, investigators seized a portion of the stolen BTC in 2022, then valued at $3.6 billion. Lichtenstein was sentenced to five years in federal prison in 2024 and was released in January 2026 under the First Step Act.
As of now, the U.S. government holds substantial cryptocurrency assets, including bitcoin valued at about $24.54 billion and ether worth approximately $146 million. These assets are part of a strategic national reserve.
The U.S. government has returned bitcoin linked to the 2016 Bitfinex hack to the exchange, which plans to redeem customer claims and repurchase its own tokens. This follows a court-mandated restitution agreement after the hacker's conviction.