Journalist Uncovers the True Amount of Bitcoin Held by US Authorities

The U.S. Marshals Service currently holds 28,988 BTC, which is significantly lower than previously estimated. This information was revealed in response to a FOIA request filed by a journalist using the alias L0la L33tz.

Her investigative work was commissioned by David Bailey, the chairman of Bitcoin Magazine, who offered a reward of $10,000 for verification of the cryptocurrency holdings on the government’s balance sheet.

L0la L33tz clarified the distinction between seized and confiscated assets. The marshals manage confiscated coins, meaning those that have been transferred to state ownership through court rulings. Only these assets can be sold by the government.

According to her, popular on-chain trackers often provide inaccurate figures because they include arrested bitcoins. These assets may be overseen by agencies such as the FBI, but they cannot be sold until a court ruling is issued.

As an illustration, L0la L33tz pointed to the 94,000 BTC from the Bitfinex exchange hack. Trackers attribute this amount to the government; however, a confiscation decision for this case has yet to be made. This indicates that market fears regarding a potential sale of the coins are premature.

The Marshals Service sells assets through public auctions. As of now, the agency has not announced a new sale, and all 28,988 BTC remain on its balance sheet.

Earlier, Arkham identified U.S. government wallets holding bitcoins valued at approximately $23.5 billion.

The news has drawn criticism from advocates of accumulating digital gold. Senator Cynthia Lummis described the situation as a «strategic mistake.»

«I’m alarmed by reports that the U.S. has sold over 80% of its reserves. If true, this would set the country back years in the Bitcoin race,» she stated.

It is worth mentioning that in March, President Donald Trump tasked a working group on cryptocurrencies to explore the creation of a national reserve for digital assets.