The U.S. government moves $606,000 in bitcoin linked to the 2016 Bitfinex hack to Coinbase
Bitfinex plans to use the returned coins to redeem all Recovery Right Tokens and devote at least 80 percent of remaining net proceeds to repurchasing and burning its UNUS SED LEO token.
What to know:
- The U.S. government moved about $606,000 in bitcoin tied to the 2016 Bitfinex hack to Coinbase Prime, a transfer that may not necessarily signal imminent selling.
- Federal proceedings require that the seized Bitfinex-related bitcoin be returned in kind to the exchange, rather than sold and sent to the U.S. Treasury.
- Bitfinex plans to use the returned coins to redeem all Recovery Right Tokens and devote at least 80 percent of remaining net proceeds to repurchasing and burning its UNUS SED LEO token.
Transfers to exchanges are often interpreted as a sign of potential selling pressure. However, that is not always the case and could also reflect routine wallet movements, custody changes, or other non-selling activity.
These coins have destination
The bitcoin tied to the Bitfinex hack, which saw Lichtenstein walk away with 119,756 BTC, has a court-mandated destination and it’s not U.S. Treasury.
In early 2025, federal proceedings solidified the in-kind restitution of the seized assets to Bitfinex, requiring the government to return the coins rather than liquidate them independently.
Bitfinex intends to use the returned funds to fully redeem all outstanding Recovery Right Tokens – digital claims issued to customers who suffered losses in the hack – and to allocate at least 80% of the remaining net proceeds to repurchase and burn its UNUS SED LEO token.
