The U.S. government has become one of the largest holders of Bitcoin (BTC), with over 200,000 BTC worth more than $5 billion despite selling thousands of coins worth millions earlier this year .
Cryptocurrency firm 21.co estimates that the U.S. government still holds 194,188 BTC, worth an estimated $5.3 billion, according to data analysis of public documents. The firm noted in its analysis that these are “lower-bound estimates of U.S. government holdings based on publicly available information.”
The analysis tracks Bitcoin movements from U.S. government wallets related to three of the largest BTC seizures of 2020, the Silk Road seizure. 69,369 Bitcoin Bitfinex hack confiscated money in November 2020 94,643 Bitcoin In January 2022, James Chung seized 51,326 Bitcoin March 2022.
The government’s Bitcoin reserves are primarily held in encrypted storage facilities (called hardware wallets) under the Department of Justice and the Internal Revenue Service. The U.S. government made two major seizures in 2022.
related: US Government Plans to Sell 41K Bitcoins Linked to Silk Road
Seized assets do not immediately belong to the government. The U.S. Marshals Service is the primary agency responsible for the sale of seized property and will only receive title to seized Bitcoins after a court has issued a clear forfeiture judgment.
The U.S. government also sells some of the seized Bitcoin through the auction system from time to time in accordance with court liquidation orders. The most famous government auction dates back to 2014, when billionaire Tim Draper purchased 30,000 BTC in a 2014 US government auction.
In recent years, however, the U.S. government has turned to cryptocurrency exchanges to sell seized Bitcoins through public auctions. A public document confirmed that the government sold 9,118 BTC on Coinbase earlier this year in March.
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