Overview
- The government transfer, executed Thursday, sent about $606,000 in bitcoin to Coinbase Prime, an institutional custody platform, in a move flagged by Arkham.
- Blockchain records show the funds came from a federal wallet and trace back to the 2016 Bitfinex breach carried out by Ilya Lichtenstein.
- A court ruling in 2025 requires the recovered bitcoin be returned in kind to Bitfinex rather than sold by the U.S. Treasury.
- Bitfinex says it will redeem Recovery Right Tokens for customers and use at least 80% of remaining proceeds to buy and burn its LEO token.
- Federal wallets hold about 328,361 BTC, with earlier transfers on March 3 and April 10 underscoring routine management that can trigger selling speculation.