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Recent data analysis based on public filings reveals that the United States government has emerged as one of the largest Bitcoin holders, with holdings exceeding 200,000 BTC, valued at over $5 billion, despite selling a substantial portion earlier this year.
Crypto firm 21.co conducted an analysis and estimated that the U.S. government’s current Bitcoin holdings stand at 194,188 BTC, with an estimated worth of $5.3 billion. The analysis made clear that these figures represent the lower bounds of the U.S. government’s holdings, based on publicly available information.
This analysis traced the movement of Bitcoin within government wallets associated with the three largest BTC seizures since 2020. These seizures included the Silk Road seizure of 69,369 BTC in November 2020, the Bitfinex Hack seizure of 94,643 BTC in January 2022, and the James Zhong seizure of 51,326 BTC in March 2022.
The U.S. government securely stores its Bitcoin holdings offline in encrypted storage devices, commonly referred to as hardware wallets. These are safeguarded by the Justice Department and the Internal Revenue Service. It’s important to note that seized assets do not immediately become the property of the government. The U.S. Marshals Service, responsible for selling seized assets, only takes possession of the Bitcoin once a court issues a definitive forfeiture judgment.
In recent times, the U.S. government has adopted the practice of selling seized Bitcoin on cryptocurrency exchanges rather than through public auctions. One such sale took place in March of this year when the government sold 9,118 BTC on Coinbase, as confirmed in a public filing. This approach differs from previous methods where auctions were the primary means of selling seized Bitcoin.
It’s worth mentioning that Bitcoin seized by the government does not instantly become government property, and it is typically acquired through legal processes and court judgments before becoming available for sale.
Notable Auction in 2014: In a notable case from 2014, billionaire Tim Draper acquired 30,000 BTC from U.S. government auctions.
These findings highlight the U.S. government’s growing involvement in the cryptocurrency space and its role as a significant Bitcoin holder.
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