A Freedom of Information Act request filed by journalist L0la L33tz revealed that as of March, the U.S. Marshals Service officially has custody of 28,988 BTC —valued at about $3.4 billion —significantly lower than public estimates of nearly 200,000 BTC. Many third‑party trackers like Arkham Intelligence had previously assumed a much larger total based on on‑chain observations. This discrepancy stems from a key difference: the Marshals manage forfeited BTC—assets legally awarded to the government—while other agencies like the FBI and IRS may hold seized BTC that haven’t been forfeited yet, meaning they’re not officially government property The revelation stirred controversy. Senator Cynthia Lummis warned that liquidating more than 80% of government crypto reserves could be a "strategic blunder" in the global Bitcoin race. Meanwhile, industry observers suggest that the reduced holdings may limit government influence on market dynamics. In response, analysts are calling for more transparency , improved coordination among federal crypto custodians, and clear records on custody arrangements—even as some seized coins remain held with private custodians like Coinbase or Anchorage
