The US government transferred 12,267 Bitcoin from seized-asset wallets on October 8, with 9,000 BTC subsequently deposited at Coinbase Prime, an institutional custody and trading platform. The movement, valued at approximately $1.02 billion, marks the largest single-day outflow from identified US government Bitcoin holdings since December 2, 2024.
The transfers began on October 6 when Bitcoin prices hovered near $86,500. By October 8, as the price fell to approximately $82,500, the government-linked wallets completed the movement to Coinbase Prime. On October 7 alone, approximately 8,428 BTC, valued at roughly $770 million, reached the custody platform. The October 6 movement involved 834 BTC from previously unclassified government wallets.
Galaxy Research, a blockchain research firm, identified 2,456 BTC from previously unlabeled addresses that followed the same transfer procedures as known government wallets. This discovery suggests publicly labeled government holdings may understate total US Bitcoin control. Galaxy’s analysis indicates the government currently holds approximately 319,086 BTC across identified wallets, down from a peak of 352,587 BTC in August 2024.
Coinbase Prime and Custody Status
Coinbase Prime provides institutional trading and custody services. The platform’s deposit address first recorded use in December 2025 and has received a combined 11,567 BTC since that date. The October 7-8 deposits do not necessarily indicate immediate liquidation. Approximately $470 million in Bitcoin had previously moved to likely Coinbase Prime addresses.
The transfers originate from multiple sources. Approximately 94,643 BTC came from recovery of the 2016 Bitfinex hack, while 127,271 BTC is associated with LuBian and Chen Zhi. These two asset groups represent over 66 percent of current government holdings but remain subject to legal proceedings.
Legal Framework and Bitfinex Proceedings
An April 2025 federal court ruling awarded Bitfinex no direct restitution in criminal proceedings, directing competing ownership claims over Bitfinex-recovered assets into a separate ancillary proceeding. Former Bitfinex customers have asserted ownership claims over portions of the recovered funds.
A March 2025 executive order established a Strategic Bitcoin Reserve and permits certain disposals required by courts or law, including transfers for verified crime victims and forfeiture obligations. The Justice Department filed a civil forfeiture complaint in October 2025.
The principal Bitfinex recovery wallet, holding 94,643 BTC, remained untouched as of Galaxy Research’s assessment. The timing of the October 8 transfers coincided with a $4,000 decline in Bitcoin’s price, though
