Bitcoin News Today: U.S. Marshals Service Holds 28,988 BTC, 85% Less Than Estimated

The U.S. Marshals Service (USMS) has recently disclosed that it is holding 28,988 Bitcoin (BTC), a figure that has sparked considerable debate and scrutiny within the cryptocurrency community. This revelation challenges previous estimates, which suggested that the agency held a significantly lower amount of Bitcoin. The USMS is responsible for managing and liquidating assets seized during criminal investigations, and its holdings of Bitcoin are the result of various seizures over the years.

The exact amount of Bitcoin held by the USMS has been a subject of speculation for some time. Third-party estimates had suggested that the agency held a smaller amount of Bitcoin, but the recent disclosure has shown that these estimates were significantly lower than the actual holdings. This discrepancy highlights the challenges in accurately tracking and estimating the holdings of government agencies, particularly when it comes to cryptocurrencies.

The disclosure of the USMS's Bitcoin holdings has important implications for the cryptocurrency market. The agency's holdings represent a significant portion of the total supply of Bitcoin, and any movement in these holdings could have a substantial impact on the market. For example, if the USMS were to liquidate a portion of its holdings, it could lead to a decrease in the price of Bitcoin. Conversely, if the agency were to hold onto its holdings, it could provide a sense of stability to the market.

The disclosure also raises questions about the transparency and accountability of government agencies in managing seized assets. The USMS's holdings of Bitcoin are a result of various seizures over the years, and the agency has a responsibility to manage these assets in a transparent and accountable manner. The recent disclosure is a step in the right direction, but there is still more work to be done to ensure that government agencies are held accountable for their management of seized assets.

According to a recent disclosure, the U.S. Marshals Service (USMS) has 28,988 BTC in its possession. This is a notable drop from previous estimates, which suggested that the country held nearly 200,000 BTC. The declaration followed a Freedom of Information Act (FOIA) request submitted on March 24 by independent journalist L0la L33tz. A letter dated July 15 from the Office of General Counsel confirmed that the released records originated from the Asset Forfeiture Division. While most of the report was made public, some portions were redacted for legal and security reasons. These included information on specific storage procedures, wallet addresses, and security systems.

The documents revealed that the USMS currently holds 28,988 BTC, valued at approximately $3.45 billion based on current market rates. Further, individual wallet balances range from $4,464.48 to $100.95 million and $43.70 million. In criminal investigations involving digital assets, seized cryptocurrencies must undergo a formal court-ordered forfeiture process before they can become government property. The USMS is responsible for managing, safeguarding, and liquidating such assets on behalf of federal agencies.

The figure disclosed got attention because it accounts for only 15% of what many believed to be the total U.S. government Bitcoin reserves, previously estimated at nearly 200,000 BTC. This raised concerns that it may have quietly sold about 85% of its holdings. Wyoming Senator Cynthia Lummis, who has long advocated for the creation of a national strategic BTC reserve, partly using forfeited cryptocurrency, expressed similar concern on X: “I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins.”

L0la L33tz later clarified the situation by explaining the difference between seized and forfeited assets. She noted that confiscated cryptocurrencies are not considered government property until a court officially transfers their ownership to the state. Only then can the USMS legally manage or sell them. As such, the reported figure of 28,988 BTC refers only to surrendered assets. The remaining 170,000 BTC that many believed had been sold are still held as impounded property and have not yet been processed through the legal system.

Data from blockchain analytics firm Arkham Intelligence shows that the U.S. government controls approximately 198,000 BTC, currently valued at more than $23 billion. L33tz pointed out that tracking platforms often overstate holdings by including seized assets that have not yet been legally transferred. She cited the 94,000 BTC linked to the Bitfinex hack as an example. Although these funds are under government control, they have not yet been legally processed and cannot yet be sold.