If the Bitcoin that the US government sold were kept, their current value would have reached $17 billion, about 46 times more.
How much Bitcoin does the US hold and where did it come from? Image: Finance Magnates
The US Bitcoin Reserve
The US government currently controls around 198,109 BTC, equivalent to $17.8 billion, according to data from Arkham Intelligence.
Statistics on crypto assets held by the US government. Source: Arkham (03/07/2025)
Most of the Bit were seized from cybercriminals and asset forfeitures, but have never been audited. Currently, federal agencies are conducting an inventory to add to the reserve fund.
This morning (03/07), President Donald Trump signed an executive order establishing the "Strategic Bit Reserve Fund" for the United States. According to the regulations, the fund will include all Bit confiscated from criminal cases, civil cases, or financial penalties. The US government currently has no plans to purchase additional Bit from other sources.
David Sacks, Crypto and AI Policy Advisor to the President, affirmed that the US will not sell the Bit in the reserve fund but will use it as a store of value to maximize financial benefits. At the same time, the US Department of the Treasury and the Department of Commerce have been tasked with developing a strategy to purchase additional Bit, provided they do not "violate" the taxpayers' tax-free status.
Mr. David revealed that over the past decade, the US has sold 195,000 BTC and received $366 million. If this Bit had been kept, its current value would have exceeded $17 billion. According to him, this is the price that American taxpayers have to pay for the lack of a long-term strategy.
Over the past decade, the federal government sold approximately 195,000 bitcoin for proceeds of $366 million. If the government had held the bitcoin, it would be worth over $17 billion today. That's how much it has cost American taxpayers not to have a long-term strategy.
— David Sacks (@davidsacks47) March 6, 2025
The Bitfinex Case
Nearly half of the Bit in the US Strategic Reserve Fund actually belongs to Bitfinex. The government seized assets from the hack of this exchange in 2016, which was one of the largest asset forfeitures in US history.
After an investigation that lasted until 01/2022, law enforcement seized 94,636 BTC from the mastermind Ilya Lichtenstein, after discovering a file on his cloud storage account containing a list of wallets and private keys. This Bit represents about 80% of the nearly 120,000 BTC he had stolen from Bitfinex.
REMINDER: Almost half of the U.S. Strategic Bitcoin Reserve rightfully belongs to Bitfinex.
— The Wolf Of All Streets (@scottmelker) March 7, 2025
The government seized 94K BTC from the 2016 Bitfinex hack—Bitcoin that was stolen from users.
Lichtenstein and his wife, Heather Morgan, successfully laundered about 25,111 BTC before being arrested. In late 2024, Lichtenstein was sentenced to 5 years in prison, while Morgan received an 18-month sentence. However, the Bit seized from Bitfinex has not yet been fully forfeited and may be returned to the exchange in the future.
btw, of the coins the government holds, 97.7% of them are bitcoin, and it's 98% if you include WBTC
— Alex Thorn (@intangiblecoins) March 7, 2025
According to court records released earlier this year, the US government has recommended returning $9.4 billion in stolen Bit to Bitfinex.
The Silk Road Case
In addition to Bitfinex, the US government also seized 69,370 BTC from "Person X" in November 2020. This Bit was stolen from Silk Road, the Dark Web black market for illicit goods.
This Bit was initially worth $960 million, but by the end of 2024, its value had grown to over $6.5 billion. After much legal wrangling, a federal judge dismissed the appeal, paving the way for the US Department of Justice to sell the seized Bit.
Another case occurred in November 2022. At that time, the government seized 51,351 BTC from James Jimmy Zhong, who may have been "Person X" and was accused of stealing Bit from Silk Road and hiding them for over 10 years.
The Bit was found at Zhong's home, in a safe in the basement and a popcorn tin in the bathroom closet. Zhong later turned himself in and voluntarily surrendered the Bit, which were worth $3.38 billion at the time, making it one of the largest asset forfeitures in US history.
The US Has Liquidated a Portion of the Bit
On 03/14/2023, the US liquidated 9,861 BTC, generating $215.7 million, all of which came from the James Zhong case. Initially, the government planned to sell the remaining Bit in 4 more batches in 2023, but the plan did not materialize.
By January 2025, the US Department of Justice had only just been granted court approval to sell 6.5 billion USD worth of Bit from the Silk Road, but the Biden administration appears to have failed to act before Trump took office on January 20.
Currently, the US is the country holding the most Bit in the world, with 198,109 BTC, mainly from the Silk Road, Bitfinex and many other illegal activities. With the new policy, the Trump administration will not sell more Bit but may use it in the US's long-term financial strategies.
Statistics of the countries holding the most Bit in the world. Source: BitBO (03/07/2025)
Compiled by Coin68
