Despite auctioning off some seized itcoin">Bitcoin earlier this year, the government still holds approximately 194,188 BTC according to estimates by crypto firm 21. co. This massive itcoin">Bitcoin stash, worth around $5.3 billion at current prices, is held primarily offline in encrypted storage devices by agencies like the Department of Justice and the IRS.
The holdings are largely derived from major itcoin">Bitcoin seizures since 2020, including 69,369 BTC from Silk Road in November 2020, 94,643 BTC from Bitfinex in January 2022, and 51,326 BTC from James Zhong in March 2022.
Seized assets are not immediately available to government agencies. The U.S. Marshals Service, responsible for selling seized property, only takes possession after a definitive forfeiture judgment by the courts. Portions of seized itcoin">Bitcoin are occasionally auctioned off, like the 9,118 BTC the government sold on oinbase">Coinbase in March 2022.
The origins and size of the U.S. government’s itcoin">Bitcoin holdings are notable given the ongoing debates around cryptocurrency regulation. However, the government has so far shown little indication of plans to sell off or leverage its massive crypto stash.
For now, the U.S. government seems content with passively holding one of the largest known itcoin">Bitcoin wallets in the world. With regulators still grappling with oversight of the crypto space, the strategic value of this multi-billion dollar itcoin">Bitcoin reserve remains unclear.
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