As the global fascination with cryptocurrencies increases, so does the involvement of governments—particularly in relation to criminal activities and the seizure of digital assets. The United States has made a significant move to reinforce its position on cryptocurrency: not merely through regulation or prosecution, but by establishing what seems to be a national Bitcoin reserve.

In the wake of a significant law enforcement operation, the U.S. is aiming to retain millions in seized Bitcoin from a recent raid. However, a more pressing question arises—how much Bitcoin does the U.S. government truly possess? The answer may be unexpected.

Establishing a National Bitcoin Reserve

Since the onset of Donald Trump's administration, the United States has been investigating a method to manage confiscated cryptocurrencies more effectively. A component of this strategy involves the creation of a central reserve for Bitcoin, consisting of digital assets obtained during criminal investigations, especially those related to cybercrime. Instead of liquidating these assets, as has been customary in the past, the plan is to store and manage them strategically, potentially serving as a hedge or for future governmental use. Recently, the government took its initial definitive step towards this objective—and it was linked to a high-profile raid on a well-known group of hackers.

Source: Investopedia

Cybercriminals Apprehended, Millions in Bitcoin Confiscated

On April 15, the FBI carried out a successful operation in Dallas, Texas, aimed at a cybercriminal group referred to as "Chaos." This organization had engaged in various digital offenses, most notably the use of ransomware—a type of malware that locks or encrypts a victim’s files and demands payment (typically in cryptocurrency) to regain access.

The operation resulted in the confiscation of 20.2 BTC, which, based on current market rates, is valued at over €2 million (approximately $2.2 million USD). Following this seizure, the U.S. government initiated a civil forfeiture case in the Northern District of Texas to formally incorporate the assets into the national Bitcoin reserve. Although this may appear to be a relatively minor victory, it contributes to the increasing collection of digital assets under the control of the U.S. government.

Source: Linkedin

What is the Actual Amount of Bitcoin Owned by the U.S. Government?

Estimates regarding the quantity of Bitcoin owned by the U.S. vary significantly. According to several prominent blockchain analytics platforms, the U.S. government may possess as much as 198,012 BTC—a staggering amount that, at current prices, would exceed €20.3 billion. Nonetheless, this estimate is facing growing scrutiny.

Independent journalist L0la L33tz, who is well-known on the social media platform X (formerly Twitter), filed a Freedom of Information Act (FOIA) request with the U.S. Department of Justice to clarify these figures. The response disclosed an unexpected finding: the United States Marshals Service (USMS)—the agency traditionally tasked with overseeing seized digital assets—only reported having 28,988 BTC in its possession. This represents a substantial discrepancy compared to the 198,000 BTC estimated by public blockchain data.

Hey @DavidFBailey, man of your word, looks like you owe me $10,000 https://t.co/4zE0pugqpr pic.twitter.com/LSYpkheJGH

— L0la L33tz (@L0laL33tz) July 16, 2025

Why the Discrepancy?

L0la L33tz suggests that the discrepancy may be attributed to fragmentation among various government agencies. The FBI, DEA, and other federal entities might also possess seized Bitcoin in distinct wallets, which are not reflected in the USMS total. Additionally, some of the monitored wallets, although associated with U.S. law enforcement, could still hold assets awaiting legal forfeiture, indicating they are not yet fully under government ownership.

This could clarify why the blockchain tracking platform Arkham Intelligence reports that government-controlled wallets contain 198,000 BTC, in contrast to official reports that suggest a significantly lower amount. Furthermore, Arkham’s data indicates that these wallets have not transferred any funds in over four months, implying a long-term holding strategy—whether deliberate or due to legal restrictions.

Strategic Hoarding or Just Legal Limbo?

Regardless of the precise figure, it is evident that the U.S. government is not in a hurry to liquidate seized cryptocurrency assets. In fact, this gradual movement of funds lends credence to theories that the U.S. is discreetly building a substantial crypto reserve—either as part of a broader policy change or simply due to intricate forfeiture laws that hinder liquidation. Nonetheless, there is increasing public interest and concern regarding the extent of crypto held by the government, its storage locations, and its intended use.

Source: Judicature Duke

Final Thoughts

The U.S. government’s decision to retain over €2 million in Bitcoin seized from a ransomware group is a significant indicator: cryptocurrency is no longer merely a financial curiosity—it has become a strategic asset. However, as inquiries intensify regarding the actual magnitude of government crypto holdings, transparency and public accountability will be essential in the future. Whether it amounts to 28,000 BTC or 198,000 BTC, one fact remains clear—the influence of cryptocurrency in law enforcement, finance, and geopolitics is only set to expand.