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U.S. Government Bitcoin Reserves Confirmed: Arkham Intelligence Reveals Control of Over 198,000 BTC
On October 23, blockchain analytics firm Arkham Intelligence clarified the extent of the U.S. government’s Bitcoin (BTC) holdings, squashing confusion triggered by previous public disclosures. According to a Cryptopolitan report, the U.S. government currently holds at least 198,000 BTC, valued at a staggering $23.5 billion, despite misleading figures from the U.S. Marshals Service (USMS). This development reassures the crypto community after apprehensions arose from public records supplied by the USMS, a division under the Department of Justice.
Recent USMS-released documents noted the agency held approximately 28,988 BTC, valued at an estimated $3.44 billion as of July 15, 2025. However, Arkham clarified that this figure solely represents the Bitcoin held by the USMS. Bitcoin reserves from other federal agencies are not included within this dataset. The firm further noted that the U.S. government's total Bitcoin holdings have remained static for the past four months, dispelling concerns over substantial liquidation.
Senator Lummis Warns of Risks Amid Claims of U.S. Bitcoin Selloffs
Prominent Bitcoin advocate and U.S. Senator Cynthia Lummis voiced her concern over earlier reports implying that over 80% of government-owned Bitcoin reserves had been sold. Addressing this alarming speculation, Lummis cautioned that a reduction to only 29,000 BTC would jeopardize the country’s standing in the ever-competitive blockchain and Bitcoin ecosystem. “If the U.S. has truly reduced its holdings to just 29,000 BTC, it will lag in the Bitcoin race for years to come,” Lummis stressed in a statement.
Decentralized Bitcoin Management and Sources of U.S. Reserves
Arkham Intelligence reiterated that the USMS data only reflects Bitcoin managed by this specific entity. Other federal agencies—including the FBI, IRS, DEA, and the Department of Justice—do not consolidate their financial ledgers for public view. According to Arkham’s analysis, the cumulative holdings of the U.S. government amount to approximately 198,012 BTC, a total primarily derived from high-profile criminal seizures.
Here are some of the most significant BTC confiscations:
- Bitfinex Hack (2016): Seizure of 114,599 BTC, currently valued at approximately $13.65 billion.
- Silk Road Marketplace: Confiscation of 94,643 BTC linked to illegal transactions on the dark web.
- FTX Collapse (Alameda Research): Retrieval of BTC worth $812.5 million from collapsed accounts.
The infamous Silk Road case further strengthened the government’s holdings with these notable recoveries:
- James Zhong: Recovery of 51,680 BTC, following theft.
- Hacker ‘Individual X’: Seizure of 69,370 BTC during investigations into Silk Road.
Concerns Over Transparency Following FOIA Records
The initial confusion surrounding the U.S. government’s Bitcoin reserves stemmed from a Freedom of Information Act (FOIA) request filed by independent journalist L0la L33tz, who sought insights into the USMS's Bitcoin inventory. The disclosed figures, however, only captured partial details, leaving much of the government’s BTC assets unaddressed.
In efforts to enhance transparency, the journalist is now probing whether the U.S. government engages Coinbase Prime, a premier cryptocurrency custody and trading platform, to manage and liquidate its Bitcoin holdings. Supporting this, Arkham data reveals substantial BTC sales from 2023 to 2024, which include:
- 9,861 BTC (worth approximately $215 million) liquidated from James Zhong’s recovered stash.
- An additional 10,000 BTC sold, valued at $593.9 million during the same timeframe.
Despite these transactions, Arkham estimates that the government still retains over 150,000 BTC, primarily derived from the Bitfinex and Silk Road cases. However, the lack of formal disclosures or unified reporting across federal agencies underscores the inherent complexity in estimating the exact scope of government-controlled crypto assets.
Calls for Transparency in U.S. Bitcoin Management
The absence of a cohesive system to track and publicly account for federally managed Bitcoin has ignited debates about the need for greater transparency. The fragmentation of Bitcoin custody across various agencies, coupled with limited public insight, has fueled speculation and misinformation. This lack of clarity highlights the ongoing challenges in monitoring and auditing crypto assets at a national scale while navigating the decentralized and highly volatile nature of blockchain technology.
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