- Data is based on BTC movement of US govt wallets linked to major BTC seizures
- The Department of Justice and the IRS hold the Bitcoin offline in hardware wallets
The United States government is estimated to be holding more than 200,000 BTC worth over $5 billion, making it one of the biggest Bitcoin holders in the world. This is the case even though it sold several thousand Bitcoin this year for a few million dollars, Cointelegraph reported, citing public filings.
According to an estimate, the US government is still holding Bitcoin believed to be worth $5.3 billion. In the analysis, it was noted that this is a lowered estimate based on publicly available information.
Data is based on major Bitcoin seizures
The data is based on Bitcoin movement of US government wallets linked to several major BTC seizures in the last three years. The most recent was in March 2022, when the government seized 51,326 BTC. It confiscated just under 95,000 BTC in February 2022 dating from the Bitfinex hack and around 70,000 BTC in the Silk Road seizure of November 2020.
The Department of Justice and the IRS hold the Bitcoin stash mainly offline in hardware wallets.
Government gets possession after court verdict
The government does not immediately gain possession of seized assets. They are given to the US Marshals Service after a judgment is issued by a court of law. This agency is responsible for selling seized property.
Bitcoin sold on crypto exchanges and via auctions
When a court issues a liquidation order, the government can sell some of the seized Bitcoin through an auction system. The most Bitcoin was sold this way in 2014, when the government sold billionaire Tim Draper 30,000 BTC.
The government has been opting to sell seized Bitcoin on crypto exchanges in recent years. There was one such sale in March 2023. A public filing shows that the government sold 9,118 BTC on Coinbase.
