Skip to content

US Government Transfers $922 Million of Seized Bitcoin After Price Surge

The US government transfers $922 million of seized Bitcoin from Bitfinex in 2016, coinciding with Bitcoin's surge past $60,000. Legal proceedings related to the hack continue, with hackers confessing to their involvement.

The United States government has transferred $922 million worth of Bitcoin from two cryptocurrency wallets that held funds seized from Bitfinex in 2016. This transfer occurred on the same day Bitcoin breached the $60,000 mark for the first time in over two years, highlighting the government's actions amidst the cryptocurrency's price surge.

Seized Funds from Bitfinex Hack

The government seized the funds in 2016 after Bitfinex was hacked for approximately 119,754 BTC, worth over $7.4 billion at the current price. The recent transfers signify a significant movement of these seized assets.

Timing and Details of Transfers

The first test transfer, worth only 1 Bitcoin ($60,200 during the transfer), occurred at 3:39 pm on Feb. 28. Subsequently, a second transaction worth 2,817 Bitcoin ($172.74 million), a third transaction worth 0.01 Bitcoin ($613.35), and a fourth transaction worth 12,267 Bitcoin ($748.46 million) were made, according to Arkham Intelligence data.

The transfers coincided with legal proceedings related to the Bitfinex hack. Ilya Lichtenstein, a hacker involved in the theft and laundering of over $4.5 billion worth of Bitcoin from Bitfinex, detailed his actions in a Washington court. Lichtenstein, along with his wife Heather Morgan, pleaded guilty to money laundering conspiracy in connection with the hack in August 2023.

Impact on Bitcoin's Price

Bitcoin's price surged past $60,000 on Feb. 28, rising 5.52% in the 24 hours leading up to 9:45 pm UTC. The cryptocurrency is up over 20% in the past week, reflecting the growing interest and investment in the digital asset.