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The U.S. government has emerged as a significant holder of Bitcoin, amassing a substantial total of more than 200,000 BTC, presently valued at over $5 billion. Earlier this year, they did liquidate several thousand Bitcoins, amounting to millions of dollars, but their inventory remains noteworthy.
Public filings disclose that they currently possess approximately 194,188 BTC, equivalent to roughly $5.3 billion. These numbers are based on an analysis conducted by the crypto entity 21.co, underscoring that these figures are derived from publicly available information and may represent conservative estimates.
The breakdown of the U.S. government's Bitcoin holdings reveals three primary sources. In November 2020, they acquired 69,369 BTC from the infamous Silk Road operation. In January 2022, a substantial addition of 94,643 BTC came from the Bitfinex Hack. Lastly, in March 2022, the James Zhong case added another 51,326 BTC to their holdings.
Notably, the government doesn't store these Bitcoins online. They utilize encrypted devices known as hardware wallets, which are predominantly kept offline. These wallets are under the jurisdiction of both the Justice Department and the Internal Revenue Service.
It's important to note that just because these assets are seized, they don't immediately become the government's property. Only after the court provides a final forfeiture verdict does the U.S. Marshals Service, responsible for managing such assets, gain control of the Bitcoin.
Over the years, the U.S. government has occasionally sold portions of their Bitcoin holdings. A historic instance dates back to 2014 when entrepreneur Tim Draper acquired 30,000 BTC during a government auction.
However, recently, the preference seems to lean toward using cryptocurrency exchanges over public auctions for such sales. In a case in point, in March of this year, 9,118 BTC were sold on Coinbase, a detail that is a matter of public record.
