- Recent reports led some to believe the U.S. government sold off a majority of its Bitcoin holdings, causing concern from lawmakers.
- A Freedom of Information request revealed the U.S. Marshals Service currently holds approximately 29,000 forfeited bitcoins.
- Confusion arose between seized bitcoins (held temporarily) and forfeited bitcoins (owned by the government), with data from trackers reportedly overstating U.S. holdings.
- High-profile seizures, such as 95,000 bitcoins from the Bitfinex hack, remain in government custody pending legal decisions.
- The actual size of the U.S. government’s Strategic Bitcoin Reserve is much smaller than some reports suggested, with sales of billions in bitcoin not confirmed.
The U.S. government has not sold most of its bitcoin (BTC) holdings, despite reports suggesting a significant sell-off. Confusion over how the government categorizes and tracks its bitcoin led lawmaker Senator Cynthia Lummis to warn about a potential strategic loss for the nation.
Recent data from a Freedom of Information request showed the U.S. Marshals Service currently holds about 28,988 forfeited bitcoin, valued at roughly $1.6 billion. Some believed the government once held nearly 200,000 bitcoins—worth about $23 billion—but had sold about 85% of its stash.
News outlets and bitcoin advocates cited publicly available tools like Arkham and Bitcoin Treasuries to support claims of a large selloff. Senator Lummis reacted on social media, saying, “If true, this is a total strategic blunder and sets the United States back years in the bitcoin race.”
However, government records clarify a distinction between seized and forfeited bitcoin. Forfeited bitcoin has been both seized and legally transferred to government ownership, while seized bitcoin is held by authorities until a court or legal process determines its final status. For example, the 95,000 bitcoin seized from the 2016 Bitfinex hack are still legally contested, with final ownership not yet determined.
Legal disputes over seized digital assets can last years. In the Bitfinex case, courts postponed decisions about restitution, and those bitcoins are not included in the new Strategic Bitcoin Reserve. This reserve will consist only of government-owned, forfeited bitcoin, not assets that are still subject to ongoing legal proceedings.
Industry experts have pointed out that data services like Arkham may not reflect custodial movements or classify governmental holdings accurately. As a result, estimates of the government’s actual bitcoin reserves may differ from figures circulated on social media.
The U.S. government’s actual holdings are lower than some reports claimed, and there is no clear evidence of a major recent sell-off of bitcoin. Legal processes continue to affect the total amount of bitcoin under government control.
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