Bitcoin News Today: U.S. Marshals Service Holds 28,988 Bitcoin, Far Below Estimates

The U.S. Marshals Service has disclosed that it holds only 28,988 Bitcoin, a figure significantly lower than the previously estimated 200,000 BTC. This revelation has sparked widespread confusion and raised questions about the government’s actual cryptocurrency holdings and the transparency of its asset management practices.

The discrepancy between the disclosed holdings and prior estimates was brought to light following a Freedom of Information Act (FOIA) request. The U.S. Marshals Service (USMS) is responsible for managing seized cryptocurrencies, which are received from various federal agencies such as the FBI, IRS, and DOJ. The unexpectedly low figure has led to speculation about the whereabouts of the remaining Bitcoin and the accuracy of federal records.

Industry experts and analysts suggest that a substantial portion of the government’s Bitcoin may be held by private custodians like Coinbase and Anchorage Digital. These partnerships, established in 2021 and 2024, could explain the discrepancy in the USMS’s ledger. However, concerns persist about the integrity of asset tracking, as the USMS reportedly relies on outdated methods such as Excel spreadsheets for managing Bitcoin custody records. This antiquated approach may contribute to the confusion surrounding the true scale of government-held digital assets.

Senator Cynthia Lummis has publicly criticized the government’s decision to liquidate most of its Bitcoin holdings, arguing that retaining only around 29,000 BTC undermines the United States’ strategic financial position in the global crypto market. This perspective aligns with Donald Trump’s advocacy for establishing a Strategic Bitcoin Reserve, as outlined in his March executive order mandating the transfer of seized digital assets to the U.S. Treasury. Despite these initiatives, current Bitcoin holdings fall significantly short of the envisioned reserve, fueling debate over federal crypto policy and asset management efficacy.

Experts and policymakers emphasize the urgent need for improved transparency and coordination among federal agencies managing digital assets. The fragmented custody arrangements and inconsistent record-keeping practices undermine public trust and complicate efforts to assess the government’s true cryptocurrency portfolio. Advocates like David Sacks, a key figure in Trump’s crypto advisory team, have proposed budget-neutral strategies to bolster Bitcoin acquisition. However, without clear oversight and unified management, these proposals face significant implementation challenges.

The revelation of the U.S. Marshals Service’s limited Bitcoin holdings exposes critical vulnerabilities in federal cryptocurrency management, including fragmented custody, outdated tracking systems, and strategic missteps. Addressing these issues through enhanced transparency, centralized oversight, and robust asset tracking is essential for restoring confidence and strengthening the United States’ position in the global crypto economy. Stakeholders should closely monitor forthcoming policy developments to gauge the government’s commitment to securing and optimizing its digital asset portfolio.