The U.S. Marshals Service currently holds 28,988 BTC, a figure significantly lower than previously reported by various sources. This information was made public following a Freedom of Information Act (FOIA) request filed by journalist L0la L33tz, working on assignment for Bitcoin Magazine chairman David Bailey. Bailey had offered a $10,000 bounty for independently confirming the U.S. government’s Bitcoin holdings. L0la L33tz explained the distinction between seized and forfeited assets, emphasizing that the U.S. Marshals Service is responsible specifically for coins that have been seized and subsequently forfeited—meaning they have been designated as government property by a court order. Only these assets can be lawfully sold by the government. She noted that popular on-chain data trackers often overestimate the government’s holdings, as they sometimes include assets that have only been seized but not yet legally forfeited. These coins may be under the control of agencies like the FBI, but they remain unsellable until a court’s forfeiture decision is issued. As an example, L0la L33tz cited the 94,000 BTC linked to the Bitfinex exchange hack. Though some trackers attribute these funds to the U.S. government, a judicial forfeiture decision has not yet been reached in the case. As a result, concerns about imminent government sales of these coins are premature. The Marshals Service typically sells forfeited cryptocurrencies through public auctions. While there are currently no announced sales planned, all 28,988 BTC remain on the agency’s books. Arkham, a blockchain analytics firm, had previously identified U.S. government-controlled wallets holding approximately $23.5 billion worth of Bitcoin. The news drew criticism from some proponents of holding Bitcoin as a strategic reserve. Senator Cynthia Lummis, for example, called the current situation a “strategic mistake.” “I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins,” she commented.
