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- 1 As per the publicly available data, the U.S. government currently retains approximately 194,188 BTC, valued at around $5.3 Billion.
- 2 The transactions associated with U.S. government wallets are linked to the three most significant BTC seizures since 2020.
The leading cryptocurrency Bitcoin (BTC) holds its own charm that the majority of crypto investors aspire to hold. Many prominent high-net-income individuals and institutions are known to hold the crypto asset. However, when it comes to the biggest Bitcoin holder, it’s not an institution or individual investor.
In a surprising turn of events, the United States government has managed to accumulate a substantial Bitcoin holding, surpassing 200,000 BTC valued at over $5 Billion. This revelation comes even after the government sold a portion of their holdings worth millions earlier this year, according to data analysis by crypto firm 21.co.
Based on publicly available data, 21.co’s analysis estimates that the U.S. government currently retains approximately 194,188 BTC, valued at around $5.3 Billion. It’s important to note that these estimations represent the minimum holdings of the U.S. government based on publicly accessible information.
The analysis closely monitored Bitcoin transactions associated with U.S. government wallets linked to the three most significant BTC seizures since 2020. These seizures included the Silk Road seizure of 69,369 BTC in November 2020, the Bitfinex Hack seizure of 94,643 BTC in January 2022, and the James Zhong seizure of 51,326 BTC in March 2022.
The majority of the U.S. government’s Bitcoin holdings are stored in encrypted hardware wallets, which are maintained offline and safeguarded by the Justice Department and the Internal Revenue Service. In 2022, the U.S. government carried out two notable Bitcoin seizures.
It’s essential to clarify that assets seized by the government do not automatically become government property. The U.S. Marshals Service, the primary agency responsible for selling seized assets, only takes possession of the seized Bitcoin once a court issues a final forfeiture judgment.
Over the years, the U.S. Government has periodically sold a portion of the seized Bitcoin through auctions conducted in accordance with court liquidation orders. One of the most notable government auctions occurred in 2014 when billionaire Tim Draper acquired 30,000 BTC through U.S. government auctions.
However, there has been a shift in the U.S. government’s approach to selling seized Bitcoin. They have increasingly turned to using cryptocurrency exchanges rather than public auctions. An example of this method occurred in March earlier this year when the government officially documented the sale of 9,118 BTC on Coinbase, signaling a strategic shift in their asset disposal strategy.
The reasons behind this significant accumulation of Bitcoin by the U.S. government remain a subject of intrigue among the crypto community and financial experts. The government’s growing presence in the cryptocurrency space continues to raise questions about its broader implications for the digital asset market.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
