US Government Transfers Over $1 Billion in Seized Bitcoin to Coinbase Prime

A US government-linked wallet transferred 12,267.02 Bitcoin, valued at about $1.01 billion, to Coinbase Prime deposit addresses on October 8. The coins originated from funds seized in connection with the 2016 Bitfinex hack. The movement was part of a broader series of transfers between October 6 and October 8 totaling 17,795 to 21,500 BTC, valued at $1.5 billion to $1.78 billion. While analysts from Arkham Intelligence and Galaxy Research characterized the activity as custody consolidation rather than an immediate liquidation, Bitcoin fell roughly $4,000 during the transfers over supply overhang concerns.