US Government Moves $1 Billion in Bitcoin Amid Sale Speculation

Wallets associated with the U.S. government transferred 12,267 Bitcoin (BTC), valued at approximately $1.01 billion, on Thursday, raising questions about the movement of seized cryptocurrency assets and whether the transactions could signal an upcoming sale.

According to blockchain analytics firm Arkham Intelligence, the Bitcoin originated from a government-controlled wallet containing cryptocurrency confiscated following the 2016 Bitfinex hack. The funds were transferred to a newly created, unidentified wallet, while another transaction directed assets to a separate address.

Blockchain records showed no deposits to cryptocurrency exchanges during the latest transfers, suggesting the activity may represent internal wallet restructuring rather than an immediate Bitcoin liquidation.

The $1 billion Bitcoin transfer followed significant movements involving government-linked cryptocurrency wallets just one day earlier.

On Wednesday, approximately 3,200 BTC worth $264 million and $119 million in Tether (USDT) were transferred to Coinbase Prime deposit addresses. Arkham identified the originating wallets as holding assets connected to the FTX/Alameda and Bitfinex seizures.

The transactions attracted attention among cryptocurrency investors monitoring potential government Bitcoin sales and their implications for market liquidity.

Earlier reports also highlighted transfers exceeding $100 million in Bitcoin and BNB from U.S. government-associated wallets. Similar activity occurred in July when approximately $288 million in confiscated Bitcoin and Ethereum was transferred to Coinbase Prime through newly established intermediary addresses.

However, cryptocurrency transfers to Coinbase Prime do not automatically indicate selling pressure. The institutional platform provides digital asset custody services alongside trading and other financial solutions, meaning government deposits could serve several operational purposes.

The latest developments also come amid the U.S. government's evolving cryptocurrency reserve policy.

An executive order signed in March 2025 established a Strategic Bitcoin Reserve, directing forfeited Bitcoin into government holdings and specifying that reserve assets should not be sold.

This policy has increased scrutiny of federal cryptocurrency transactions, particularly when large Bitcoin holdings move between unidentified wallets or institutional platforms.

Arkham data indicates that the U.S. government continues to control approximately $25.5 billion in cryptocurrency assets, making its blockchain activity closely watched by digital asset investors.

For now, the latest Bitcoin transfers provide no confirmed evidence of a government sale, leaving the purpose of the transactions uncertain as market participants monitor subsequent wallet activity.