US Marshals' Bitcoin Mystery Threatens US Crypto Reserve Plan

The U.S. Marshals Service (USMS) has been unable to confirm the exact amount of Bitcoin it holds, raising concerns about the potential impact on the U.S. government's proposed crypto reserve plan. According to sources familiar with the matter, the agency is struggling to provide even a rough estimate of its Bitcoin holdings, which could have significant implications for the establishment of a crypto reserve plan proposed by White House crypto czar David Sacks.

The USMS's current management practices have been criticized for their inefficiency. The agency still relies on Excel records and manual operations, which can lead to operational errors and potential losses of billions of dollars. External experts have warned that the agency's management loopholes could have serious consequences for the U.S. government's crypto reserve plan.

The USMS has been seeking cooperation with private enterprises since as early as 2018 to improve its management of crypto assets. However, the bidding process was delayed for several years, and the agency faced setbacks in awarding contracts. In 2021, the USMS awarded contracts to BitGo and Anchorage Digital, but both contracts were later canceled because the companies did not meet the "small business" criteria. In 2024, the USMS realigned its strategy and awarded two new contracts to manage different categories of crypto assets.

The USMS's inability to confirm its Bitcoin holdings and the potential impact on the U.S. government's crypto reserve plan highlight the need for improved management practices and cooperation with private enterprises. As the U.S. government continues to explore the use of cryptocurrencies, it is crucial for the USMS to address these management loopholes and ensure the security and efficiency of its crypto asset management.