Key Insights:
- There has been speculation this week that the US government sold a staggering 85% of its alleged Bitcoin holdings.
- The truth remains that the US government holds its crypto assets in different categories, between seized and forfeited assets.
- The 200,000 Bitcoin held by the US government is still intact, and the crypto reserve is on track.
Reports have surfaced, claiming that the United States government has sold the majority of its Bitcoin holdings. As expected, this development has sparked a wave of concern across the crypto industry.
Still, how much truth is there to these claims?
The Shocking Claim
A recent Freedom of Information Act (FOIA) response from the U.S. Marshals Service (USMS) set off alarm bells in the crypto space. According to the disclosure, the USMS currently holds just 28,988 BTC. At current market prices, these holdings are worth about $3.47 billion.
The disturbing aspect of this revelation is that this figure represents only 15% of what many had believed to be the U.S. government’s total Bitcoin reserves (200,000 BTC). This means that the US offloaded 85% of its Bitcoin holdings in a major, under-the-radar move.
Panic Spreads Across Crypto Circles
The crypto community reacted massively to this revelation, with Senator Cynthia Lummis being one of the loudest voices.
She took to X (formerly Twitter) to express her dismay, saying
“I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins. If true, this is a total strategic blunder and sets the United States back years in the bitcoin race.”
Before jumping to conclusions, though, it’s important to understand the difference between seized and forfeited assets.
I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins.
If true, this is a total strategic blunder and sets the United States back years in the bitcoin race. https://t.co/ciYf1uhy0x
— Senator Cynthia Lummis (@SenLummis) July 16, 2025
For starters, seized assets are cryptocurrencies taken by law enforcement during investigations or legal proceedings. These funds are not considered government property unless they are officially forfeited by court order.
Forfeited assets on the other hand, are legally declared to be property of the U.S. government. These are the coins that the USMS is responsible for managing and selling.
So, when the USMS says it holds 28,988 BTC, it is referring only to forfeited Bitcoin, or coins that can legally be auctioned or sold by the federal government.
In essence, the remaining ~170,000 BTC that people thought had vanished are still there. Only that they are “seized” assets, which haven’t yet gone through the legal process that would turn them into government property.
What About the 200,000 Bitcoin?
Blockchain analytics firm Arkham Intelligence shows that the U.S. still controls around 198,000 BTC, which is currently worth more than $23 billion.
This aligns well with earlier reports that the US government had accumulated a massive Bitcoin stockpile over years of law enforcement seizures. Much of it comes from high-profile cases like the Silk Road takedown and the Bitfinex hack.
For example, around 94,000 BTC were seized in connection to the Bitfinex breach, and a huge chunk of these holdings are still under legal review.
Put simply, while the government has access to these assets, it does not legally own them. At least not yet.
What Sparked the Confusion?
The confusion seems to have come from a misinterpretation of the FOIA response. The response only included Bitcoin which is currently under the authority of the USMS, which manages forfeited digital assets.
Lola L33tz, the independent journalist who filed the FOIA request, later clarified the misunderstanding. She emphasized that not all seized BTC is forfeited and that government wallet estimates often fail to differentiate between the two categories.
Alright my guys. Since we now all have our panties in a jumble over the US Government „selling their bitcoin“, Id like to alert you to the fact that there is a difference between *seized assets* and *forfeited assets*.
The USMS is mainly in charge of *forfeited assets*, meaning…
— L0la L33tz (@L0laL33tz) July 16, 2025
“This doesn’t mean the U.S. government has sold any Bitcoin,” she explained. “It just means the Treasury’s public estimates may be misleading, as they don’t differentiate between seized and forfeited assets.”
Is There Any Proof of a Bitcoin Sell-Off?
The answer to this is no. As of now, there’s no blockchain evidence that shows that President Biden or any federal agency has secretly sold 85% of the government’s Bitcoin stash.
Arkham Intelligence and other blockchain tracking platforms would have detected such a massive liquidation, and the strategic reserve plan is still fully in place.
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