US Moves $1B in Seized Bitfinex Bitcoin; ESMA Sets 3-Month Stablecoin Deadline

The US government transferred more than $1 billion in Bitcoin linked to the 2016 Bitfinex hack on Wednesday, according to blockchain data, just hours after moving another $770 million in seized BTC to Coinbase Prime. A government-associated wallet sent over 12,267 BTC to an unidentified address, with Arkham Research linking the sending wallet to Bitcoin recovered from the Bitfinex breach, which originally resulted in the theft of 119,756 BTC. The combined transactions represent nearly $1.8 billion in Bitcoin movements within hours, though the purpose of the transfers remains unclear. The US Marshals Service and Department of Justice had not responded to requests for comment. The activity comes as Washington continues developing its approach to government-held cryptocurrency, including a Strategic Bitcoin Reserve established by executive order in March 2025. Current estimates put US government Bitcoin holdings at approximately 328,372 BTC in 2026, largely accumulated through criminal seizures and asset forfeitures.

Meanwhile, the European Securities and Markets Authority (ESMA) has given EU crypto firms a three-month deadline to end services involving stablecoins that aren't compliant with the Markets in Crypto-Assets Regulation (MiCA) framework. On Thursday, ESMA directed national regulators to require companies to address remaining exposures to non-compliant stablecoins by January 8, 2027. "Crypto-asset service providers (CASPs) authorised under MiCA should cease providing services related to non-MiCA-compliant stablecoins to clients in the European Union," ESMA wrote. The guidance covers MiCA-regulated crypto services, including trading platforms, exchange services, order execution, custody, transfers, investment advice, and portfolio management.

In other news, Ethereum co-founder Vitalik Buterin urged the crypto industry to take potential cryptographic threats from advances in AI seriously. Buterin's warning adds to growing concerns among blockchain developers about the long-term implications of artificial intelligence on cryptographic security, as rapid progress in AI capabilities could eventually challenge existing encryption standards underpinning blockchain networks.