US Government’s Bitcoin Holdings Under Scrutiny

Confiscated Crypto Fuels Debate on Reserves

Recent U.S. government disclosures reveal a significantly smaller Bitcoin holding than previously assumed, sparking concerns among crypto enthusiasts and policymakers about potential large-scale sales under the current administration.

Actual Holdings Revealed

The U.S. Marshals Service now confirms it possesses 28,988 Bitcoin, a figure representing only 15% of earlier estimates. This current stash is valued at approximately $3.47 billion, a stark contrast to the $24 billion previously discussed.

I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins.

If true, this is a total strategic blunder and sets the United States back years in the bitcoin race. https://t.co/ciYf1uhy0x

— Senator Cynthia lummis (@senlummis) July 16, 2025

The revelation prompted questions from figures like Senator Cynthia Lummis, who expressed alarm over the potential reduction in government Bitcoin reserves, calling it a “total strategic blunder.”

Confiscated Assets vs. Government Property

A crucial distinction exists between Bitcoin confiscated by law enforcement and assets formally owned by the government. The U.S. Marshals Service holds the former, which may include funds recovered from criminal activities.

For instance, billions in Bitcoin seized from the Bitfinex hack, potentially totaling around 94,000 BTC, might be returned to creditors. Such distributions could significantly impact any plans to establish a national Bitcoin reserve, like those potentially envisioned by Donald Trump.

Blockchain analysis firm Arkham Intelligence provides insights into the government’s digital asset holdings. While inter-ledger transactions might slightly inflate total figures, the core question remains whether the vast majority of identified Bitcoin has been liquidated.

Impact on Future Reserves

The discrepancy between reported holdings and earlier estimates suggests that the government’s actual control over its Bitcoin assets is complex. While law enforcement agencies manage significant amounts, factors like pending creditor claims can alter ultimate ownership.

Analysts anticipate that any future strategic Bitcoin reserve held by the U.S. will likely be substantially less than the initial $24 billion projection, primarily due to these complexities and potential past sales.

In 2023, the U.S. government seized a record $2.7 billion in cryptocurrency assets, highlighting the ongoing role of digital currencies in illicit activities and subsequent law enforcement actions (U.S. Department of Justice, 2023).