Bitcoin ETF

US govt Moves $922 Million in Seized Bitcoin as Price Surpasses $60,000: Coincidence or Calculated Move?

The U.S. government has transferred a total of $922 million worth of Bitcoin from wallets holding funds seized from the 2016 Bitfinex hack. This move coincides with a recent Bitcoin price surge, surpassing the $60,000 mark for the first time in over two years.

Government Transfers Seized Bitcoin

The transfers, revealed by blockchain data firm Arkham Intelligence, occurred on February 28th, the same day Bitcoin crossed the $60,000 threshold. Bitcoin experienced a 5.52% rise in the 24 hours leading up to the transfers, solidifying its position as the world’s leading cryptocurrency.

The government initiated the transfers with a single Bitcoin, valued at approximately $60,200 at the time. This test transaction was followed by three larger transfers:

  • 2,817 Bitcoin (approximately $172.74 million)
  • 0.01 Bitcoin (approximately $613.35)
  • 12,267 Bitcoin (approximately $748.46 million)

These funds were originally seized by the government in 2016, following a massive hack on the Bitfinex exchange. The attack resulted in the theft of approximately 119,754 Bitcoin, valued at over $7.4 billion at the current price.

Interestingly, the government’s transfers occurred just one day after Ilya Lichtenstein, the hacker responsible for the Bitfinex heist, appeared in court. Lichtenstein admitted to stealing and laundering over $4.5 billion worth of Bitcoin in a Washington court.

Also Read: Bitcoin Rally Stumbles Near $64K as US Moves $1 Billion in BTC: Bullish Sentiment Remains

Movie in the Works for “Bitcoin’s Bonnie and Clyde”

Lichtenstein and his wife, Heather Morgan (also known as Razzlekhan), were arrested in 2022 for laundering the stolen Bitfinex funds. The couple pleaded guilty to money laundering charges in August 2023, and their story is reportedly being adapted into a film inspired by a New York Times article, highlighting them as “Bitcoin’s Bonnie and Clyde.”

The US government’s actions and the coinciding developments surrounding the Bitfinex hack raise questions about the potential influence of cryptocurrency prices on government operations and the ongoing legal battles surrounding stolen digital assets.

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