Bitcoin News Today: U.S. Gov't Holds 198,012 BTC ($23.5B) as FOIA Confusion Clarified

Arkham Intelligence has confirmed that the U.S. government retains a substantial Bitcoin reserve of at least 198,012 BTC, valued at approximately $23.5 billion, across multiple federal agencies, following confusion sparked by a recent Freedom of Information Act (FOIA) request [1]. The clarification addresses alarmist claims that the government had sold off 80% of its holdings, leaving only ~29,000 BTC, as publicized by U.S. Senator Cynthia Lummis [2].

The confusion arose after a FOIA request by independent journalist “L0la L33tz” revealed that the U.S. Marshals Service (USMS) holds 28,988.356 BTC, valued at $3.44 billion, as of July 15, 2025 [3]. The USMS, which manages seized assets and public auctions, is one of several agencies with Bitcoin reserves. However, other law enforcement bodies—the FBI, IRS, DEA, and Department of Justice—also hold significant amounts from high-profile seizures but do not regularly disclose their balances, complicating centralized tracking [2].

Arkham’s analysis traced the bulk of the government’s holdings to major criminal cases. The largest portion, 114,599 BTC ($13.65 billion), was seized from Ilya Lichtenstein and Heather Morgan in connection with the 2016 Bitfinex hack. Silk Road-related cases contributed 94,643 BTC, including 51,680 BTC from James Zhong and 69,370 BTC from an unidentified individual. Additional reserves include $81.25 million from Alameda Research’s Binance accounts and $79.49 million from HashFlare scammers [3]. These holdings have remained dormant in wallets for four months, according to Arkham’s data [2].

The U.S. government has conducted several high-profile asset liquidations via Coinbase Prime. For example, 10,000 BTC from James Zhong was sold for $593.9 million in August 2024, and another 10,000 BTC from the same case fetched $968.6 million in December 2024. Smaller sales, such as 58.7 BTC from Ryan Farace in July 2024, further highlight the government’s active management of seized assets [1]. Despite these sales, Arkham emphasizes that the government’s total Bitcoin reserves—estimated at around 200,000 BTC—remain largely intact [3].

The lack of a centralized reporting system for government-held Bitcoin underscores transparency challenges. While the USMS provides regular disclosures, other agencies’ non-disclosure practices have long obscured the full extent of U.S. reserves. Arkham’s findings align with prior analyst estimates but stress the need for inter-agency coordination to resolve discrepancies [1]. The firm’s data suggests that until all agencies adopt consistent reporting standards, the exact total may remain contested.

The incident highlights the strategic importance of Bitcoin to the U.S. government. With major reserves tied to cases like Bitfinex and Silk Road, the administration retains the option to monetize assets without liquidating strategically significant portions. Observers note that the government’s ability to manage these reserves—balancing revenue generation with long-term strategic goals—will remain a key focus in the evolving crypto landscape [3].

Source:

[1] [U.S. Government Still Holds At Least 198,000 BTC ($23.5B) Across Agencies](https://www.cryptopolitan.com/u-s-government-holds-at-least-198000-btc/)

[2] [Top Government Bitcoin Holders: U.S. Holdings in Question](https://www.msn.com/en-us/money/markets/top-government-bitcoin-holders-us-holdings-in-question-as-btc-corrects-to-119000/ar-AA1Dtr6X)

[3] [U.S. Government Still Holds At Least 198,000 BTC ($23.5B) After Clarification](https://www.mitrade.com/insights/news/live-news/article-3-981742-20250724)