TLDRUS Government wallets transferred 12,267 Bitcoin worth approximately $1.01 billion to unidentified addresses.Arkham data showed no confirmed exchange deposit or sale linked to Thursday’s Bitcoin transfer.Galaxy Research tracked another $770 million in Bitcoin transfers to Coinbase Prime over two days.Government-linked cryptocurrency movements approached $1.87 billion, including transfers involving seized Bitcoin and USDT.Bitfinex restitution proceedings and Strategic Bitcoin Reserve rules remain relevant to the ownership of seized assets.Wallets linked to the US Government transferred 12,267 Bitcoin, worth about $1.01 billion, on October 8. Blockchain tracker Arkham traced the funds to Bitcoin recovered from the 2016 Bitfinex hack. The transfers reached unidentified addresses, not exchange deposit wallets.US Government Sends Bitcoin to New AddressesArkham recorded 12,267.02 BTC leaving a wallet holding seized Bitfinex funds. The coins reached new addresses without public ownership labels. A small additional transaction appeared around the same time.The addresses do not identify their owners. Blockchain records show movement between addresses but cannot establish the purpose. No confirmed sale accompanied Thursday’s transfers.The activity followed an earlier movement of seized Bitcoin and BNB reported on October 7. That transfer included approximately 833.6 BTC worth $71.56 million sent to Coinbase Prime. Another 40,285 BNB moved through separate addresses.Coinbase Prime Received Earlier TransfersGalaxy Research tracked roughly 9,261 BTC, worth $770 million, entering Coinbase Prime across October 6 and 7. The researchers linked many coins to past government seizures. They also identified 2,456 BTC from wallets not previously labeled as government holdings.Coinbase Prime handles custody and trading, so deposits cannot confirm sales. FTX-linked wallets sent about $94.15 million in USDT to Coinbase Prime. Combined transfers reached approximately $1.87 billion over three days.The transfers came as US Bitcoin ETFs recorded heavy withdrawals on October 7. The funds posted approximately $485 million in net outflows, their largest daily loss since June. Bitcoin traded near $82,000 on Thursday.Bitfinex Restitution Complicates Bitcoin Sale ClaimsThe 2016 Bitfinex hack involved nearly 120,000 stolen Bitcoin. US authorities later recovered more than 94,000 BTC linked to the theft. In 2025, prosecutors sought to return recovered funds to the exchange.Those proceedings distinguish recovered customer property from Bitcoin that the government can retain. A March 2025 order established the Strategic Bitcoin Reserve and restricted sales of forfeited Bitcoin held there. It does not automatically cover coins awaiting restitution.A separate Bitfinex-linked Bitcoin transfer reached Coinbase earlier this week. That movement involved approximately 265 BTC, valued near $23 million. Authorities have not confirmed that Thursday’s larger transfer formed part of the same process.Arkham estimates that government-linked wallets still hold about $25.5 billion in cryptocurrency. The latest activity remains visible on the blockchain, but the final destination and purpose remain unknown.The post US Government Shifts $1B in Bitcoin Without Confirmed Sale appeared first on Blockonomi.