The U.S. authorities doesn’t maintain as a lot bitcoin as everybody thought — and the actual quantity is blowing market watchers, buyers and even U.S. lawmakers away.
For years, it was assumed the U.S. authorities held round 200,000 bitcoin (BTC) price billions of {dollars}. That was primarily based on on-chain knowledge from platforms like Arkham Intelligence, and backed up by media protection and coverage discussions round a “bitcoin reserve.”
However based on documents launched by a Freedom of Data Act (FOIA) request, the U.S. Marshals Service (USMS) — the company in command of holding and auctioning off seized property — solely holds 28,988 BTC price round $3.4 billion at current costs.
That’s round 15% of the earlier estimate.
The reality got here out because of impartial journalist Lola L33tz, who filed a FOIA request in March 2025. On July 17, she launched the official response exhibiting the USMS held method much less bitcoin than anticipated.
“In March, we filed a FOIA request for the quantity of bitcoin held by the US Marshal Service,” L33tz posted on social media. “Right now, we publish the USMS reply to our FOIA request. In addition to the listing of bitcoin it holds, totaling 28,988.35643016 BTC.”
The quantity despatched shockwaves and panic, particularly because the U.S. authorities beneath President Donald Trump had beforehand introduced plans to deal with bitcoin as a strategic nationwide asset.
In March 2025, Trump signed an govt order making a BTC reserve beneath the Treasury Division to advertise monetary sovereignty and technological management.
“This transfer harnesses the ability of digital property for nationwide prosperity,” the manager order learn.
Among the many loudest voices reacting to the information was Senator Cynthia Lummis (R-WY), a vocal bitcoin supporter. She’s alarmed that many of the authorities’s BTC may need already been bought.
“I’m alarmed by studies that the U.S. has bought off over 80% of its Bitcoin reserves — leaving simply ~29,000 cash,” Lummis mentioned.
She additionally warned it could harm America’s place within the rising international bitcoin financial system.
Deeper evaluation, nonetheless, suggests the confusion could also be due to how the U.S. handles seized bitcoin.
The USMS holds forfeited property — which means property which have been legally transferred to the federal government. However different federal businesses just like the FBI, IRS, DEA, and DOJ additionally seize bitcoin throughout investigations and people cash aren’t authorities property but.
They’re in authorized limbo till a court docket decides their ultimate standing.
So a number of the lacking BTC would possibly nonetheless be sitting with these businesses. In accordance with Arkham Intelligence, the whole government-controlled BTC would possibly nonetheless be round 198,000 BTC — however not all of it’s owned by the U.S. authorities.
This was highlighted in studies that 94,000 BTC had been seized from the Bitfinex hackers, and a few or all of that may be returned to the alternate or its collectors.
“(This) explains why the worth motion was caught for thus lengthy. Bullish,” mentioned Bitcoin Journal Chairman David Bailey, who had earlier provided a $10,000 bounty for proof of the U.S. authorities’s precise holdings.
Others speculated that if these cash had been bought off quietly, it may have suppressed the worth for months and even years.
However on-chain analysts say there’s no proof of such an enormous sale. Arkham Intelligence has not recorded any vital government-linked BTC liquidation occasions that will help claims of an 85% sell-off.
The confusion has highlighted the shortage of transparency in how the U.S. manages digital property.
Critics argue that if bitcoin is actually a strategic asset — particularly in a time of excessive inflation and national debt — then the federal government needs to be extra open about what they maintain and the place.
For now, different U.S. businesses stay silent about how a lot bitcoin they maintain, the place they’re, and the way a lot is definitely the property of the U.S. authorities, leaving analysts and lovers with solely the information that on-chain evaluation instruments present.
