US Government Bitcoin: Unveiling the True $23.5 Billion in Crypto Holdings

A significant discrepancy in official reports regarding the United States government’s Bitcoin holdings recently created confusion across financial markets and legislative circles, underscoring persistent transparency challenges in digital asset management. While an initial Freedom of Information Act (FOIA) disclosure from the U.S. Marshals Service (USMS) indicated a modest reserve of under 29,000 BTC, blockchain analytics firm Arkham Intelligence swiftly clarified that the true figure is far greater, exceeding 198,000 BTC held across various federal agencies. This clarification not only allayed concerns about a potential “strategic blunder,” as voiced by Senator Cynthia Lummis, but also highlighted the complex, distributed nature of the government’s cryptocurrency assets.

• The U.S. Marshals Service initially reported holding approximately 29,000 BTC on July 15, 2025, via a FOIA disclosure.
• Blockchain analytics firm Arkham Intelligence subsequently clarified that the U.S. government’s actual Bitcoin reserves exceed 198,000 BTC, distributed across multiple agencies.
• The initial, lower figure prompted Senator Cynthia Lummis to express alarm over a potential “strategic blunder” for U.S. positioning in the Bitcoin landscape.
• The bulk of the government’s Bitcoin holdings originates from high-profile criminal seizures, notably from the 2016 Bitfinex hack, Silk Road, and FTX collapse.
• The U.S. government has historically liquidated portions of its seized Bitcoin, including significant sales from the James Zhong case in 2023 and 2024.
• The incident underscores an ongoing challenge related to the lack of a centralized, publicly accessible database for all federal cryptocurrency holdings.

The initial alarm stemmed from a USMS document, dated July 15, 2025, which reported holdings of 28,988.356 BTC, valued at approximately $3.44 billion at the time. This figure, obtained through an FOIA request, appeared to suggest a drastic reduction in U.S. Bitcoin reserves, prompting immediate concern from policymakers. Senator Lummis took to X (formerly Twitter) to express alarm, stating that such a sell-off would “set the United States back years in the bitcoin race.”

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

However, Arkham Intelligence’s analysis provided crucial context. Their data revealed that the USMS disclosure only represented a fraction of the total federal holdings. Significant Bitcoin reserves are distributed among other agencies, including the FBI, IRS, DEA, and the Department of Justice, which do not routinely publicize their crypto asset balances. Arkham’s comprehensive tracking indicates the U.S. government controls at least 198,012 BTC, valued at roughly $23.5 billion. Importantly, these larger sums have remained unmoved for at least the past four months, suggesting stability in the overall federal crypto portfolio.

Origins of U.S. Government Bitcoin Holdings

The bulk of the U.S. government’s Bitcoin reserves originates from high-profile criminal investigations and seizures. These include major hauls from notorious cases such as the 2016 Bitfinex hack, the illicit Silk Road marketplace, and financial malfeasance linked to the FTX collapse. For instance, a substantial portion, totaling 114,599 BTC (approximately $13.65 billion), was confiscated from Ilya Lichtenstein and Heather Morgan in connection with the Bitfinex breach. Another significant segment includes 94,643 BTC from two separate Silk Road-related cases, comprising 51,680 BTC from James Zhong and 69,370 BTC from an individual known as ‘Individual X,’ both connected to the illicit online marketplace. Further notable seizures include $81.25 million in BTC from Alameda Research’s Binance accounts post-FTX collapse, and $79.49 million from HashFlare scammers Sergei Potapenko and Ivan Turogin.

Challenges in Centralized Data and Asset Management

The incident underscores a persistent challenge: the lack of a centralized, publicly accessible database for all U.S. government cryptocurrency holdings. While analysts have long estimated the total federal stash to be around 200,000 BTC, verifying this figure has been difficult due to varying reporting practices across numerous law enforcement and regulatory bodies. This decentralized approach creates transparency gaps and can lead to misunderstandings when partial data is released, as demonstrated by the recent FOIA response.

Historically, the U.S. government has liquidated seized Bitcoin assets, often utilizing platforms such as Coinbase Prime. Notable sales include 9,861 BTC from the James Zhong case in March 2023, generating approximately $215 million. Further significant sales from the same case occurred in August 2024 (10,000 BTC for $593.9 million) and December 2024 (another 10,000 BTC for $968.6 million). Despite these substantial liquidations, Arkham’s analysis confirms that the U.S. government retains considerable Bitcoin reserves, primarily from the Bitfinex and Silk Road cases, which collectively account for over 150,000 BTC. The ongoing process of information gathering, including a second FOIA request to ascertain the full extent of Coinbase Prime’s use for managing these holdings, reflects the continued effort to bring clarity to this complex area of government asset management.