How much Bitcoin does the US hold, and where did it come from?

The U.S. government currently boasts a substantial Bitcoin reserve, comprising approximately 198,109 BTC valued at $17.7 billion, as reported by blockchain analytics firm Arkham Intelligence. This trove primarily originates from confiscations and forfeitures associated with various criminal activities. Under an executive order signed by President Donald Trump on March 6, the government has initiated plans to establish a "Strategic Bitcoin Reserve," intended to hold any forfeited Bitcoin from criminal or civil asset forfeiture proceedings.

The legislation mandates federal agencies to ascertain the amount of Bitcoin they currently possess through forfeiture, setting the stage for potential future additions to this reserve. As the industry anticipates official audits, Cointelegraph has assembled a timeline of crucial events that have solidified the United States’ position as the largest nation-state holder of Bitcoin worldwide.

Key Seizures: A Timeline of Notable Events

November 2020: The First Silk Road Seizure
On November 3, 2020, U.S. authorities executed a significant seizure of 69,370 Bitcoin, valued at around $960 million at the time. The seized Bitcoin was linked to an unidentified hacker instructively dubbed “Individual X,” who had infiltrated the notorious online marketplace Silk Road. The surrender of these funds was made possible after U.S. officials traced the Bitcoin back to wallet addresses associated with the platform before its shutdown in 2013. On December 30, 2024, a district court judge denied a motion to block the forfeiture, allowing the Department of Justice to eventually liquidate the assets, which had appreciated to a value of $6.5 billion.

January 2022: The Bitfinex Hack
A substantial operation unfolded on January 31, 2022, when U.S. law enforcement seized approximately 94,636 Bitcoin from Ilya Lichtenstein, connected to the Bitfinex hack. U.S. authorities succeeded in breaching Lichtenstein’s cloud storage, unearthing a file that housed around 2,000 crypto wallet addresses along with their private keys. This cache represented about 80% of the Bitcoin stolen in a larger heist that totaled 119,754 BTC. Lichtenstein and his wife, Heather Morgan, faced legal repercussions, receiving sentences of five years and 18 months in prison, respectively. Notably, while the funds were seized, they had not been forfeited, leaving open the possibility for their return to Bitfinex.

March 2022: The Second Silk Road Seizure
In March 2022, another significant Bitcoin seizure occurred when authorities confiscated 51,351 BTC from hacker James "Jimmy" Zhong, believed to have ties to Silk Road. This seizure is particularly notable due to the unique circumstances of its recovery; officials found the Bitcoin stored in unconventional locations, including a popcorn tin within Zhong’s home. The amount was valued at around $3.38 billion, marking one of the most remarkable financial asset seizures in U.S. history.

The Selling of Seized Bitcoin
On March 14, 2023, the U.S. government sold 9,861 BTC, translating to $215.7 million, solely sourced from Zhong’s forfeited Bitcoin. Despite plans for additional liquidation of the remaining Bitcoin in 2023, the anticipated sales did not transpire as expected. In January 2024, the Department of Justice received authorization to sell the accumulated 198,109 BTC seized from Silk Road. However, the Biden administration postponed action prior to Trump’s inauguration on January 20.

While the Strategic Bitcoin Reserve will commence with existing forfeited assets, the White House indicated that the Commerce and Treasury Secretaries would investigate methods to acquire additional Bitcoin without imposing costs on U.S. taxpayers. This establishment signals that the funds housed within this reserve are not intended for future sales, contrasting sharply with the approaches taken by past administrations, a point underscored by White House AI and Crypto Czar David Sacks.

In a market landscape still adjusting to regulatory shifts and geopolitical influences, the trajectory of the U.S. government’s Bitcoin holdings remains one of significant interest and speculation within the crypto community.