US Shifts Seized Bitfinex Hack Bitcoin Worth $606K To Coinbase Prime

(MENAFN- Crypto Breaking) The US government has transferred about 8.2 Bitcoin, valued at over $606,000, to Coinbase Prime. The funds are linked to assets seized from the 2016 Bitfinex hack. Blockchain data tracked the movement and confirmed the destination.

The transfer is part of a broader restitution process approved by a federal court. Authorities are returning seized Bitcoin to Bitfinex instead of selling it. This move follows earlier transfers made in March and April 2026.

Bitcoin Transfer Linked to Restitution Process

The transaction was split into two parts, with 7.999 BTC and 0.197 BTC sent in sequence. Both amounts were directed to the same Coinbase Prime address. On-chain data confirmed the movements and timing.

This transfer follows a legal order issued in early 2025. The ruling required that recovered Bitcoin be returned directly to Bitfinex. The court recognized the exchange as the sole victim in the case.

Exchange transfers often raise concerns about possible selling. However, this case differs due to legal restrictions. The transferred Bitcoin is not intended for open market liquidation.

Federal authorities continue to manage a large Bitcoin reserve. As of April 2026, government wallets hold about 328,361 BTC. The latest transfer represents only a small portion of that total.

Background of the 2016 Bitfinex Hack

The Bitfinex hack occurred in August 2016 and significantly impacted the cryptocurrency market at the time. Hacker Ilya Lichtenstein exploited a system weakness and stole over 119,000 BTC. The stolen assets were worth $72 million then.

Over several years, Lichtenstein and Heather Morgan attempted to move the funds through layered transactions. Their actions aimed to hide the origin of the Bitcoin. Authorities tracked the activity over time.

In February 2022, the US government seized about 94,636 BTC. Investigators accessed private keys stored in cloud files. These keys allowed direct control of the stolen assets.

Lichtenstein later received a five-year prison sentence in November 2024. Morgan was sentenced to 18 months. Both had pleaded guilty to money laundering charges earlier.

Bitfinex Plans for Returned Bitcoin

Bitfinex has outlined how it will use the returned Bitcoin. The exchange plans to redeem its Recovery Right Tokens fully. These tokens were issued after the 2016 hack.

In addition, Bitfinex will allocate at least 80 percent of remaining proceeds. The funds will go toward buying back and burning UNUS SED LEO tokens. This plan follows commitments made in its recovery framework.

A statement tied to the plan noted that the process would follow existing agreements. It said,“the funds will be used according to the recovery commitments already defined.” This reflects a structured use of the returned assets.

The recent transfer marks another step in the restitution timeline. While the amount moved is small, it aligns with court directives. Further transfers may follow as the process continues.

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