US Government Moves $1 Billion in Seized Bitcoin

The US government has carried out another substantial transfer of seized cryptocurrency, moving more than $1 billion in Bitcoin just hours after transferring hundreds of millions of dollars in BTC to a Coinbase Prime wallet.

Blockchain records revealed that a wallet associated with cryptocurrency confiscated by US authorities transferred more than 12,267 Bitcoin (BTC), valued at over $1 billion at the time of reporting. The transaction followed earlier government-linked transfers totaling approximately $770 million in Bitcoin to Coinbase Prime, raising attention around the movement of the country's seized digital assets.

US moves over $1 billion in seized Bitcoin

According to blockchain analytics firm Arkham Research, the wallet involved in the latest transaction was connected to funds recovered from the 2016 Bitfinex hack. The security breach resulted in the theft of 119,756 BTC, making it one of the largest cryptocurrency exchange hacks in history. Although the source of the latest transfer was linked to the recovered assets, the identity of the recipient wallet's owner remained unknown at the time of publication.

US government Bitcoin holdings remain substantial

Estimates indicate that the US government held approximately 328,372 BTC as of 2026, largely accumulated through cryptocurrency seizures associated with criminal investigations and enforcement actions. These holdings represent a significant amount of Bitcoin under government control, with movements between wallets attracting attention from market participants monitoring potential changes in the management of seized assets.

However, the transfers alone do not establish whether the Bitcoin is being sold, moved for custody purposes or transferred for another reason.

Strategic Bitcoin reserve awaits legislative approval

In March 2025, US President Donald Trump signed an executive order establishing a strategic Bitcoin reserve and a separate digital asset stockpile. The initiative introduced a federal framework for managing certain cryptocurrency holdings controlled by the government.

Lawmakers are continuing efforts to formally establish the reserve through legislation, with a related bill advancing through a US House committee. The latest transfers come as questions remain about how the government will manage its substantial Bitcoin holdings under the emerging strategic reserve framework.

Sources:

https://arkm.com/explorer/tx/9194d9de95703bd6d43997e0f1341896314e6586650a6ae179371f2dc10dfd3d

https://cointelegraph.com/news/us-government-seized-bitcoin-moved-one-transaction