The U.S. government has moved about $606,470 worth of Bitcoin to Coinbase Prime, according to on-chain data tracked by Arkham. The transfer involved 8.196 BTC tied to Ilya Lichtenstein, the hacker linked to the 2016 Bitfinex breach.
The transaction quickly drew market attention because transfers to exchange-linked platforms often raise questions about possible selling activity, especially at a time when large holders and miners have already been sending more Bitcoin to the market.
The move also triggered comparisons with Bhutan’s recent wallet activity. As we reported, the Royal Government of Bhutan has moved about 3,247 BTC, valued at roughly $240.4 million, so far this year. In the last 24 hours alone, Bhutan reportedly moved around 250 BTC, or about $18.47 million, in several transfers, including batches of 162 BTC and 69.7 BTC to new wallet addresses.
Those transactions have kept attention on whether sovereign holders are becoming more active sellers in 2026.
Bitfinex-linked Transfer Does not Automatically Point to a Sale
The Bitcoin moved by the U.S. government is tied to the Bitfinex hack case. In August 2016, Lichtenstein stole 119,756 BTC from the exchange through more than 2,000 unauthorized transactions. Investigators later recovered part of those funds, and the seized assets remained in government custody for years.
The latest transfer to Coinbase Prime does not necessarily mean the U.S. government is preparing to sell the Bitcoin into the open market. Federal proceedings completed in early 2025 required the Bitfinex-related Bitcoin to be returned in kind to the exchange rather than sold and sent to the U.S. Treasury. That makes the recent wallet movement part of a legal restitution process, even though it still passed through a major institutional platform.
Bitfinex has said it plans to use the returned bitcoin to redeem all outstanding Recovery Right Tokens, which were issued after the hack. The company also said it would direct at least 80% of the remaining net proceeds to repurchase and burn its UNUS SED LEO token. That gives the transfer a defined destination, which separates it from a standard reserve sale by the U.S. government.
Bhutan Comparisons Grow as Sovereign Bitcoin Activity Rises
The question around whether the U.S. government is following Bhutan’s Bitcoin selling spree comes from timing as much as from size. Bhutan’s transfers this year have been much larger than the latest U.S. movement, and the recent batch of 250 BTC in 24 hours has added to that focus. Traders often watch sovereign wallet transfers closely because those moves can affect sentiment even before any confirmed sale appears.
Source: BTC Treasuries
According to BitcoinTreasuries.net figures, the United States remains the largest government bitcoin holder, with about 328,372 BTC. China follows with 190,000 BTC, and the United Kingdom is listed with 61,245 BTC.
Ukraine is part of the Bitcoin holders with 46,351 BTC, while El Salvador holds 7,624 BTC. Bhutan is listed with 4,973 BTC, alongside smaller reported holdings from the United Arab Emirates, Kazakhstan, North Korea, Venezuela, Taiwan, and Finland.
Whales and Miners Add to Bitcoin Supply Concerns
The government transfer comes as other supply-side signals remain active. Market watchers said wallets holding more than 100 BTC have increased transfers to exchanges since bitcoin’s last move higher. That activity has reached levels not seen in weeks, adding another layer of caution to trading conditions.
Concurrently, the miner selling has also stayed in focus. According to CryptoQuant, the miner reserves have fallen from about 1.862 million BTC at the start of this cycle to around 1.801 million BTC, a net decline of roughly 61,000 BTC. In addition, the verified sales listed in the data included 4,026 BTC from Riot Platforms, 13,210 BTC from Marathon Digital, and 1,992 BTC from Core Scientific.
Despite these moves, the Bitcoin price has not wavered but actually surged, backed by the 10-day ceasefire announced by Donald Trump. At press time, the BTC price was trading at $75,611, a 1.09% surge from the intra-day low.
