The United States government, a prominent global holder of Bitcoin (BTC), currently possesses a substantial cryptocurrency treasury of over 200,000 BTC, with an estimated value of approximately $5 billion, according to data analysis conducted by 21.co. These digital assets are securely safeguarded in offline hardware wallets under the oversight of the Department of Justice and the Internal Revenue Service.
A significant portion of this cryptocurrency trove stems from seizures executed in the battle against cybercrime, with three recent confiscations contributing an impressive 215,000 BTC to the government’s coffers. Among the most notable seizures, 69,369 BTC was seized from Silk Road founder Ross Ulbricht in 2020, followed by 94,643 BTC confiscated from Bitfinex hackers Ilya Lichtenstein and Heather Morgan in January 2022, and 51,326 BTC collected from James Zhong in March 2022.
The U.S. Marshals Service assumes custody of these seized assets only after receiving a definitive forfeiture judgment from the courts. The process of liquidating these digital currencies commenced in January 2021 and is anticipated to conclude by the close of 2023.
Historically, the government has periodically auctioned off confiscated Bitcoin in accordance with court liquidation orders. One noteworthy instance occurred in 2014 when entrepreneur Tim Draper acquired 30,000 BTC during such an auction. More recently, cryptocurrency exchanges like Coinbase (NASDAQ: COIN) have been utilized as platforms for selling these seized assets.
