Bitcoin News Today: U.S. Marshals Service Holds 28,988 BTC, Far Less Than Estimated

The U.S. Marshals Service has revealed that it currently holds 28,988 BTC, a figure that is significantly lower than previous estimates which suggested the government held over 200,000 BTC. This information was made public following a Freedom of Information Act (FOIA) request filed by journalist L0la L33tz, who was working on assignment for Bitcoin Magazine chairman David Bailey. Bailey had offered a $10,000 bounty for independently confirming the U.S. government’s Bitcoin holdings.

L0la L33tz clarified the distinction between seized and forfeited assets, explaining that the U.S. Marshals Service is responsible for coins that have been seized and subsequently forfeited, meaning they have been designated as government property by a court order. Only these assets can be lawfully sold by the government. She noted that popular on-chain data trackers often overestimate the government’s holdings, as they sometimes include assets that have only been seized but not yet legally forfeited. These coins may be under the control of agencies like the FBI, but they remain unsellable until a court’s forfeiture decision is issued.

For instance, L0la L33tz cited the 94,000 BTC linked to the Bitfinex exchange hack. Though some trackers attribute these funds to the U.S. government, a judicial forfeiture decision has not yet been reached in the case. As a result, concerns about imminent government sales of these coins are premature. The Marshals Service typically sells forfeited cryptocurrencies through public auctions. While there are currently no announced sales planned, all 28,988 BTC remain on the agency’s books.

Arkham, a blockchain analytics firm, had previously identified U.S. government-controlled wallets holding approximately $23.5 billion worth of Bitcoin. This revelation has drawn criticism from some proponents of holding Bitcoin as a strategic reserve. Senator Cynthia Lummis, for example, called the current situation a “strategic mistake.” She commented, “I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins.”

The disclosure by the U.S. Marshals Service highlights the distinction between seized and forfeited property. While the USMS holds 28,988 BTC, other government agencies such as the DEA or FBI could be in possession of additional seized Bitcoin. This clarification underscores the complexity of tracking and managing the U.S. government's cryptocurrency holdings. The lower-than-expected amount of Bitcoin holdings could be due to multiple asset liquidations over the years, with the U.S. government known for auctioning off seized cryptocurrencies. Notably, large BTC auctions have taken place since 2014, with participants like venture capitalist Tim Draper famously purchasing thousands of BTC. It’s also possible that earlier public estimates were outdated or simply incorrect. Over time, Bitcoin’s rising price may have exaggerated the perceived value of these holdings in public opinion. This new information offers a clearer view of the government’s actual BTC reserve status.

The revelation has stirred debate across social media and crypto circles. Many users are expressing surprise and suspicion about the whereabouts of the missing Bitcoin. Others view this as a bullish signal, suggesting that most of the supply is now back in the hands of the market rather than being held by a government entity. Regardless of the reaction, the new disclosure by the US Marshals Service is a reminder of how transparency and timely updates play a key role in the crypto ecosystem.