In a surprising development, the U.S. Treasury has become the world’s largest holder of Bitcoin reserves, amassing an estimated total of 194,188 BTC tokens valued at roughly $5.5 billion, according to a report released on Tuesday. This substantial increase in cryptocurrency holdings can be attributed to three major crypto seizures: the Silk Road operation, assets obtained from James Zhong, and the Bitfinex hack. Notably, crypto firm 21.co has suggested that the actual figure might be even higher than reported.
The U.S. Marshals Service is tasked with selling these confiscated assets following court-approved forfeiture judgments. The surge in crypto culture in the United States has led to an increase in crypto-related crimes and a heightened focus from regulatory bodies like the SEC on companies such as Coinbase (NASDAQ:COIN) and Binance.
Public filings unveiled on Tuesday confirm that the U.S. government holds over 200,000 BTC, currently valued at approximately $5.3 billion. These holdings are securely stored offline in encrypted hardware wallets and are supervised by the Justice Department and IRS. The legitimacy of these holdings has been verified by crypto entity 21.co. These holdings were obtained through a combination of sources, including the Silk Road operation, the Bitfinex hack, and the James Zhong case in March 2022.
Once a final forfeiture judgment is reached, seized assets become the property of the U.S. government and are managed by the U.S. Marshals Service. Earlier this year, the government liquidated several thousand Bitcoins, but a substantial amount is still retained. Notable past sales include Tim Draper’s purchase in 2014, with recent transactions predominantly conducted on platforms like Coinbase.