- U.S. Marshals shockingly reveal holding just 28,988 BTC, far less than the widely believed 200,000 coins in government control.
- The U.S. may store seized Bitcoin with private firms like Coinbase or Anchorage, fueling confusion over true federal BTC holdings.
- Senator Lummis slams the U.S. for selling most of its Bitcoin, warning it hurts national strength in the global crypto race.
The U.S. Marshals Service (USMS) disclosed it holds just 28,988 Bitcoin, worth roughly $3.4 billion. This figure drastically contradicts earlier public estimates, which placed government BTC holdings at nearly 200,000 coins. The update followed a Freedom of Information Act (FOIA) request filed in March by independent journalist Lola L33tz.
Previously, platforms like Arkham Intelligence estimated over $24 billion in Bitcoin held under the U.S. government’s name. However, this new disclosure shows USMS controls only a small portion. The USMS is the lead agency for handling seized crypto. Agencies like the FBI, IRS, and DOJ usually transfer digital assets to the Marshals for safekeeping and auction. Hence, the gap in records raises serious questions.
Where Is the Rest of the Bitcoin
Additionally, some speculate other agencies may still control large amounts of Bitcoin not yet transferred to USMS. One major concern centers on the 119,000 BTC seized from Bitfinex hackers. Reports claim the DOJ could have returned this to Bitfinex. However, no on-chain data confirms this movement.
Moreover, many now believe private custodians like Coinbase or Anchorage Digital manage parts of the government’s BTC stack. The U.S. signed deals with these firms in 2021 and 2024. This could explain why the USMS ledger reflects such a small total. Still, others warn that poor record-keeping might play a role. One report revealed that USMS still uses Excel spreadsheets for tracking Bitcoin custody.
Political Reactions and Strategic Concerns
Senator Cynthia Lummis criticized the selloff, calling it a strategic failure. She warned that keeping only ~29,000 BTC weakens America’s financial position. President Donald Trump has previously backed building a Strategic Bitcoin Reserve. In March, he issued an executive order requiring agencies to transfer seized digital assets to the U.S. Treasury.
Trump’s crypto lead, David Sacks, also pushed for budget-neutral strategies to acquire more BTC. Despite these plans, current numbers fall short of expectations. Consequently, the lack of transparency, coordination, and custody clarity now clouds the government’s true Bitcoin position.
