Senator Cynthia Lummis recently raised concerns about the US government seemingly selling off a huge chunk of its Bitcoin. She called it a “strategic blunder.” But is it really that simple?
The Missing Bitcoin?
Reports suggested the US government’s Bitcoin holdings plummeted from roughly 198,000 BTC to just under 30,000 BTC. This sparked panic. Lummis, alarmed by this apparent massive sell-off, voiced her concerns publicly.
The Confusion: Seized vs. Forfeited
The key to understanding this situation lies in the difference between seized and forfeited assets. The US Marshals Service (USMS), which reported the lower 29,000 BTC figure, only handles
forfeited assets – cryptocurrency officially handed over to them for auction after legal proceedings.
Meanwhile, other law enforcement agencies like the FBI hold significant amounts of seized Bitcoin. This Bitcoin is still tied up in legal cases and isn’t included in the USMS’s count.
The Real Picture: Much More Bitcoin Than We Thought
Estimates suggest the US government actually controls around 198,000 BTC across various agencies. This is a far cry from the initial panic-inducing reports. Blockchain data supports this, showing little movement in the overall government holdings.
Beyond Bitcoin: A Broader Crypto Portfolio
The US government’s cryptocurrency holdings aren’t limited to Bitcoin. They also have a substantial amount of other digital assets, including:
- 347 million USDT (Tether)
- 59,951 ETH (Ethereum)
- 750 wBTC (Wrapped Bitcoin)
- 40,293 BNB (Binance Coin)
This brings the total value of the government’s crypto portfolio to approximately $24.25 billion.
The Bottom Line: No Sell-Off, Just Confusion
The initial reports of a massive Bitcoin sell-off were based on a misunderstanding of how seized and forfeited assets are tracked. The US government still holds a significant amount of Bitcoin, and there’s no on-chain evidence suggesting a large-scale sale. The confusion stemmed from the difference in reporting between the USMS and other agencies holding seized crypto.