The US government’s Bitcoin holdings are far larger than previously thought. A recent report clears up the confusion.
The Mystery of the Missing Bitcoin
Initially, a public document showed the US Marshals Service holding about 28,988 Bitcoin (BTC), worth roughly $3.45 billion. This sparked panic among some traders, leading to price fluctuations. Senator Cynthia Lummis even voiced concerns about the implications of such low reserves.
The Full Picture: A Bitcoin Whale Emerges
However, a new report from Arkham Intelligence reveals a much different story. By analyzing blockchain data and linking Bitcoin addresses to various government agencies (FBI, IRS, DEA, and Justice Department), Arkham found that the US government actually holds at least 198,000 BTC – a whopping $23.5 billion!
This massive stash is spread across different agencies, not just the Marshals Service. These coins have remained largely untouched for the past four months. The initial panic was based on incomplete information.
Where Did All This Bitcoin Come From?
A significant portion of these holdings comes from major cases:
- Bitfinex Hack (2016):
114,599 BTC ($13.65 billion) seized from Ilya Lichtenstein and Heather Morgan. - Silk Road Seizures: Approximately 94,643 BTC, including 51,680 BTC from James Zhong’s theft and 69,370 BTC linked to another hacker (“Individual X”).
- Other Notable Seizures:
Smaller amounts from cases like the Alameda Research/FTX collapse, the HashFlare scam, and various other investigations.
Sales and the Untouched Core
While the government has sold some Bitcoin in the past (around 30,000 BTC in total from various sales), the massive holdings from the Bitfinex hack and Silk Road remain largely untouched.
The Need for Transparency
The lack of a single, publicly accessible ledger for government-held Bitcoin fuels speculation and market volatility. A real-time dashboard showing the government’s holdings would likely reduce uncertainty and prevent future panics.
