$1 Billion Bitcoin Transfer Linked to U.S. Government-Seized Funds Reaches Coinbase Prime Addresses
Approximately $1.01 billion in bitcoin linked by blockchain analytics firm Arkham to U.S. government-seized funds moved on October 8, with subsequent transactions directing portions of the holdings to addresses labeled as Coinbase Prime deposits. The transfers establish a connection to the exchange's institutional platform but do not confirm that the bitcoin was sold.
The original transaction was confirmed at 9:33:50 a.m. ET and created outputs totaling 12,267.02329833 BTC. Almost the entire amount went to an unlabeled address, while 0.0012 BTC was sent directly to an address Arkham identifies as a Coinbase Prime deposit. Arkham valued the transaction at approximately $1.01 billion.
Bitcoin Transfers Traced to Coinbase Prime Deposit Addresses
The sending address, bc1qkmk4v2xn29yge68fq6zh7gvfdqrvpq3v3p3y0s, is labeled “Bitfinex Hacker Seized Funds” within Arkham's U.S. Government entity. The transaction's largest output, totaling 12,267.02209833 BTC, went to bc1qrufsercy84xz0es4nraxkujq04365l5wqajqpf.
Mempool.space independently records the relevant addresses and transaction amounts. However, the attribution of the sending wallet to government-seized funds comes from Arkham's labeling rather than from the address data alone.
The large bitcoin output was subsequently spent in another transaction, which made an additional small deposit before moving the remaining funds onward. Later transactions sent two separate tranches of 3,000 BTC each to the same Coinbase-labeled address involved in the initial transfer.
A third tranche of 3,000 BTC, followed by the remaining approximately 3,267 BTC, was sent to the address 3A18G8hu5n6vSg8RDAj2D31TGDAE1t4ya8. Arkham also labels this address as a Coinbase Prime deposit address.
Coinbase Prime Destination Does Not Confirm a Bitcoin Sale
The transfers point to an exchange-linked destination rather than merely an unidentified wallet. However, a Coinbase Prime deposit does not by itself establish that the bitcoin was liquidated. The platform provides both custody and trading services, meaning the available transaction trail cannot determine whether the assets were being stored, prepared for trading or sold.
Coinbase already has an established custody relationship with the U.S. government. In July 2024, the company announced that the U.S. Marshals Service had selected Coinbase Prime to provide custody and advanced trading services for its large-cap digital assets.
That existing relationship provides context for the destination of the funds, but the transaction information does not establish the purpose of the October 8 transfers or confirm whether any resulting sale took place.
source: thedefiant
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
Check out other news and articles on Google News
Disclaimer:
The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.