⏱ 3 min read
Arkham traced Bitcoin, WBTC and USDT tied to Bitfinex and Alameda to Coinbase Prime, testing Trump-era reserve rules and restitution carve-outs.
The US government moved about $470 million in seized crypto to likely Coinbase Prime deposit addresses, Arkham Intelligence said on Oct. 7. The firm reported transfers of Bitcoin, wrapped Bitcoin and USDT linked to seizures tied to the 2016 Bitfinex hack and Alameda Research. Arkham added, “While we obviously can’t say the Bitcoin is being sold, it is one plausible outcome. It’s probably just as likely they are performing internal wallet hygiene or administrative work.”
The destination has drawn scrutiny because the Trump administration pledged to retain Bitcoin in the Strategic Bitcoin Reserve, and federal officials earlier this year rejected claims that seized coins had been quietly sold. In January, Bitcoin Magazine reported that about $6.3 million of Bitcoin paid to the Justice Department in the Samourai Wallet case appeared to have been sold. The US Marshals Service told DL News it had not sold those BTC and said crypto liquidations undergo a multi-level approval process before forfeited assets can be disposed of.
What the transfer could mean under reserve rules
The Strategic Bitcoin Reserve, created by executive order in March 2025, says Bitcoin deposited into the reserve “shall not be sold” and should be maintained as a US reserve asset. The order also permits disposals when required by a court or law, and when officials determine assets or proceeds should be returned to crime victims, used for law-enforcement purposes or applied to other statutory forfeiture obligations.
Those carve-outs matter because Arkham linked the latest movements to seizures from the Bitfinex hack and Alameda Research. If the assets relate to restitution or other court-directed outcomes, a move to an exchange custodian could serve custody or distribution needs rather than liquidation. A transfer alone does not establish a sale; exchange deposit addresses can also be used for custody arrangements.
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Prices as of 2026-10-08 01:01 UTC. Source: CoinGecko.
Legal paths for moving seized Bitcoin
According to the report, the government seized about 95,000 Bitcoin in 2022 from wallets controlled by Ilya Lichtenstein and Heather Morgan in the Bitfinex case, after 119,754 Bitcoin were stolen in 2016. Set against the 119,754 stolen, 95,000 is roughly 79%, indicating the scale of assets under potential forfeiture or restitution treatment. Authorities also seized another roughly $475 million in assets tied to that theft, and the report says those assets face competing forfeiture and restitution claims.
Separately, criminal forfeiture proceedings from the FTX collapse continue. The judge in Sam Bankman-Fried’s case authorized recovered forfeiture funds to compensate victims, adding another possible victim-repayment route for any movements tied to Alameda-linked seizures.
For now, Arkham reports that hundreds of millions of dollars have left US government wallets for likely Coinbase Prime deposit addresses. Whether those assets stay at Coinbase Prime, shift to other custody, or are converted to dollars will determine if this proves another false alarm over government Bitcoin sales or the first sign of a significant new disposal.
Source: CryptoSlate.
This article was written with AI assistance and reviewed by an editor.
This content is for informational purposes only and does not constitute financial advice.
🧠 HafidWatch Take
The recent transfer marks a significant movement of assets that could signal either continued custody management or the start of large-scale sales. To confirm a substantial disposal rather than a routine transfer, future activity would need to show systematic conversion into fiat currency or distribution beyond custodial wallets. Without clear signs of such actions, it remains uncertain whether this movement heralds actual asset liquidation or simply administrative reshuffling within government-controlled accounts.
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