$1.01 Billion Bitcoin Transfer Linked to U.S. Government-Seized Funds Reaches Coinbase Prime
A Bitcoin transfer valued at approximately $1.01 billion was traced to Coinbase Prime deposit addresses after a wallet labeled by blockchain analytics firm Arkham as holding U.S. government-seized funds moved 12,267.02329833 BTC on October 8.
The original transaction was confirmed at 9:33:50 a.m. ET. Almost all the bitcoin was sent to an initially unlabeled address, while 0.0012 BTC went directly to an address Arkham identifies as a Coinbase Prime deposit. Subsequent transactions routed additional portions of the funds to Coinbase-labeled addresses.
The transaction trail points to an exchange-linked destination, but it does not establish that the bitcoin was sold. Coinbase Prime offers both custody and trading services, so transfers to its deposit addresses could reflect different purposes.
Arkham Links Bitcoin Wallet to Bitfinex Hacker Seized Funds
The sending address, bc1qkmk4v2xn29yge68fq6zh7gvfdqrvpq3v3p3y0s, is labeled “Bitfinex Hacker Seized Funds” under Arkham's U.S. Government entity.
The transaction's largest output, totaling 12,267.02209833 BTC, was sent to bc1qrufsercy84xz0es4nraxkujq04365l5wqajqpf. Mempool.space independently records the relevant addresses and transaction amounts, while the attribution of the sending wallet to government-seized bitcoin comes from Arkham's labeling.
The large output was subsequently spent in another transaction that made an additional small deposit before moving the remaining bitcoin onward. Later transactions sent two separate tranches of 3,000 BTC each to the same Coinbase-labeled address involved in the initial transfer.
Another 3,000 BTC tranche, followed by the remaining approximately 3,267 BTC, was sent to 3A18G8hu5n6vSg8RDAj2D31TGDAE1t4ya8. Arkham also identifies this address as a Coinbase Prime deposit address.
Coinbase Prime Has a U.S. Government Custody Relationship
The destination is notable because Coinbase already has a custody relationship with the U.S. government. In July 2024, Coinbase announced that the U.S. Marshals Service had selected Coinbase Prime to provide custody and advanced trading services for its large-cap digital assets.
However, that existing relationship does not independently confirm the purpose of the October 8 transfers. The blockchain transactions and Arkham's address labels identify a path toward Coinbase Prime, but the available information does not establish whether the bitcoin was held in custody, prepared for trading or liquidated.
source: coinformania
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.