Discrepancy in Estimated Value of Seized Bitcoins Raises Questions About Government’s Digital Asset Reserve
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US Marshals ‘Forfeited’ Bitcoin Stash May Be $20 Billion Smaller Than Estimated, Raising Eyebrows About Reserve
A recent Freedom of Information Act (FOIA) request by independent crypto journalist L0la L33tz has brought to light a discrepancy in the estimated size of the US Marshalls’ forfeited Bitcoin stash. The new figure suggests that the actual amount may be significantly lower than initially thought.
According to the information obtained through the FOIA, it appears that the US Marshals Service holds only 28,988 Bitcoins as of March 2025. This estimate starkly contrasts with the previously reported $23.5 billion valuation, courtesy of blockchain analytics platforms like Arkham Intelligence and Bitcoin Treasuries.
While some speculate on the possibility of the government quietly selling its Bitcoin holdings, others believe that President Trump’s announcement to convert seized Bitcoin into a Strategic Bitcoin Reserve earlier this year may be the reason for the discrepancy. Despite uncertainty surrounding who controls the keys for these Bitcoins, one thing is clear: the $20 billion gap between estimates has raised eyebrows about the reserve.
Bitcoin Magazine CEO David Bailey hinted at the possibility of large-scale sales before President Trump’s inauguration in January, citing the lack of visible on-chain activity as evidence. Bitcoin analyst Sani, responsible for tracking addresses linked to US government wallets, corroborated this claim by noting that if custodians like Coinbase facilitated off-chain swaps, traditional blockchain monitoring may not accurately reflect government transactions.
US Senator Cynthia Lummis, an ardent advocate for national Bitcoin reserves, expressed concern over the reported findings. She stated, “If true, this is a total strategic blunder and sets the United States back years in the bitcoin race.”
The controversy surrounding the size of the forfeited stash has sparked heated debates about the potential implications on US involvement in the global cryptocurrency landscape.
Sources:
* FOIA request by L0la L33tz
* Bitcoin Magazine CEO David Bailey
* Bitcoin analyst Sani
Source: cryptoslate.com
