According to recent data, as of March 25, 2023, the U.S. government currently holds 205,515 Bitcoins worth $5.6 billion, or 1.06% of the circulating supply.
Those bitcoins were seized in three high-profile cases, including the Silk Road bitcoin seizure in November 2020, the Bitfinex hack seizure in 2022, and James Zhong’s bitcoin seizure last year.
Among them, in November 2022, 69,369 bitcoins were confiscated from “Personal X”, 94,643 bitcoins were confiscated from Ilya Lichtenstein and his wife Heather Morgan, and 51,326 bitcoins were confiscated by Zhong .
According to a report by Glassnode on March 9, 2023, some of these bitcoins have been transferred, reducing the total from 215,338 to 205,515. This suggests that the U.S. government may have begun liquidating some of its Bitcoin holdings, but it has not been confirmed whether this is the case.
The U.S. government’s bitcoin holdings have drawn attention from both the crypto industry and traditional finance. While some see this as a positive sign for bitcoin’s mainstream adoption, others have raised concerns about potential government control over the cryptocurrency market.
Experts suggest that bitcoin held by the U.S. government could be used for various purposes, such as funding government projects or paying off debts. However, the lack of transparency over the government’s management of bitcoin has raised questions about the potential risks and benefits of the move.
Regardless of the government’s intentions, news of its Bitcoin holdings underscores the growing importance of cryptocurrencies in today’s financial landscape and the need for regulatory clarity and oversight in the crypto space.