The Journey of the U.S. Government’s Bitcoin Holdings to $13.82 Billion
The United States government possesses a significant amount of bitcoin, and its decision to hold or sell these holdings could have a substantial impact on the price of the cryptocurrency. Public records indicate that Washington has confiscated over 200,000 bitcoin from cybercriminals since 2020. Instead of simply holding onto these seized assets, the US government has been actively confiscating and offloading bitcoin for the past decade. The question now is whether they will continue this pattern or change their approach.
In a recent development, Arkham Intelligence has uncovered that the US government seized 3.94K BTC (valued at approximately $251 million) from a drug dealer named Banmeet Singh during a trial in January of this year. This seizure adds to the US government’s overall bitcoin holdings, which now stand at 216.788K BTC, worth around $13.82 billion. It is likely that a significant portion of these holdings is the result of criminal seizures.
Arkham has also identified the address of the 3.94K BTC (worth about $251 million) seized from Banmeet Singh, further contributing to the US government’s holdings, which now amount to 216.788K BTC, valued at approximately $13.82 billion. Most of these holdings are likely the result of criminal seizures.
Moreover, according to Arkham’s data, the United States, the United Kingdom, and Germany are among the top countries in terms of government-held cryptocurrencies. The US government leads the pack with its 216.788K BTC, surpassing MicroStrategy’s recent purchase of 207,189 BTC, valued at $13.5 billion. The United Kingdom and Germany follow suit. In comparison, El Salvador, known for being the first country to adopt bitcoin as legal tender, holds a relatively smaller amount of BTC.
The US government’s ongoing accumulation of bitcoin, as evidenced by an increase of at least 5,000 BTC since early 2023, indicates a continued interest in cryptocurrency. It is worth noting that a significant portion of the US government’s bitcoin holdings comes from confiscations related to entities like the dark web marketplace Silk Road and hackers associated with the crypto exchange Bitfinex.
As the US government emerges as a potential global leader in government-held bitcoins, surpassing the combined holdings of several countries, including China, the cryptocurrency landscape braces itself for the impact. Market observers closely monitor the potential liquidation of additional Silk Road bitcoins and the uncertainties surrounding the sale of bitcoins seized from Bitfinex hackers and criminal activities.