The Oct. 6–8 movements show government-linked crypto changing wallets, not a confirmed $1.87 billion sale. The reported total combines roughly $770 million in earlier bitcoin transfers, $1.01 billion moved on Oct. 8, and $94.15 million in FTX-linked Tether; it should not be increased again by the 833.6 BTC transfer, which falls within the earlier activity. 267

• What moved: Galaxy Research traced about 9,261 BTC sent to Coinbase Prime on Oct. 6–7 and identified 2,456 BTC from previously unidentified holdings that may reflect new seizures. Bitcoin.com News separately reported 833.6 BTC tied to the Bitfinex hack and the Potapenko–Turõgin case, followed by Arkham-tracked movement of 12,267.02 BTC on Thursday, Oct. 8. The reporting also links portions of the activity to Binance-related seizures and the Tether to FTX-related assets. 267
• Why provenance matters: Galaxy estimated that about 71% of tracked government bitcoin relates to the Bitfinex and Lubian cases rather than settled government property. A court-approved return of approximately 94,643 BTC to Bitfinex makes restitution a plausible explanation for Bitfinex-linked transfers; Bitfinex has said it would redeem Recovery Right Tokens and use at least 80% of remaining net proceeds for UNUS SED LEO buybacks and burns. The reasons for the Lubian and Potapenko–Turõgin movements remain unresolved. 67
• Why Coinbase Prime is not proof of liquidation: It has served the U.S. Marshals Service in both custody and trading roles since 2024. Sending assets there is consistent with custody, restitution processing, or preparation for a sale; a wallet transfer alone cannot distinguish among them. 7
• What the reserve rule does—and does not—settle: The March 2025 order establishes a reserve for qualifying, finally forfeited government bitcoin and bars sales of bitcoin in that reserve. Assets held for return to victims may not qualify, so the rule does not establish that every coin in the reported roughly 325,000 BTC of government-linked holdings is unsellable. 3

Bitcoin’s decline and the reported roughly $120 billion contraction in crypto-market value since Sept. 30 provide market context, not evidence that these transfers caused the fall or that the government sold. No sale is confirmed; the final disposition of several transferred batches remains unknown. 167

The Oct. 6–8 movements show government-linked crypto changing wallets, not a confirmed $1.87 billion sale. The reported total combines roughly $770 million in earlier bitcoin transfers, $1.01 billion moved on Oct. 8, and $94.15 million in FTX-linked Tether; it should not be increased again by the 833.6 BTC transfer, which falls within the earlier activity. 267

• What moved: Galaxy Research traced about 9,261 BTC sent to Coinbase Prime on Oct. 6–7 and identified 2,456 BTC from previously unidentified holdings that may reflect new seizures. Bitcoin.com News separately reported 833.6 BTC tied to the Bitfinex hack and the Potapenko–Turõgin case, followed by Arkham-tracked movement of 12,267.02 BTC on Thursday, Oct. 8. The reporting also links portions of the activity to Binance-related seizures and the Tether to FTX-related assets. 267
• Why provenance matters: Galaxy estimated that about 71% of tracked government bitcoin relates to the Bitfinex and Lubian cases rather than settled government property. A court-approved return of approximately 94,643 BTC to Bitfinex makes restitution a plausible explanation for Bitfinex-linked transfers; Bitfinex has said it would redeem Recovery Right Tokens and use at least 80% of remaining net proceeds for UNUS SED LEO buybacks and burns. The reasons for the Lubian and Potapenko–Turõgin movements remain unresolved. 67
• Why Coinbase Prime is not proof of liquidation: It has served the U.S. Marshals Service in both custody and trading roles since 2024. Sending assets there is consistent with custody, restitution processing, or preparation for a sale; a wallet transfer alone cannot distinguish among them. 7
• What the reserve rule does—and does not—settle: The March 2025 order establishes a reserve for qualifying, finally forfeited government bitcoin and bars sales of bitcoin in that reserve. Assets held for return to victims may not qualify, so the rule does not establish that every coin in the reported roughly 325,000 BTC of government-linked holdings is unsellable. 3

Bitcoin’s decline and the reported roughly $120 billion contraction in crypto-market value since Sept. 30 provide market context, not evidence that these transfers caused the fall or that the government sold. No sale is confirmed; the final disposition of several transferred batches remains unknown. 167