07/03/25

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The U.S. government currently possesses approximately 198,109 Bitcoin, valued at around $17.7 billion, as reported by blockchain analytics firm Arkham Intelligence. This substantial holding has primarily been accumulated through asset seizures and forfeitures related to criminal investigations. A portion of this Bitcoin is set to contribute to the nation’s “Strategic Bitcoin Reserve,” a framework established by executive order on March 6, which aims to hold Bitcoin acquired through forfeiture proceedings.

Following the executive order, federal agencies have been tasked with assessing their forfeited Bitcoin balances to incorporate into the national reserve. While a comprehensive audit is pending, a historical timeline has emerged detailing significant events that have positioned the U.S. as the leading sovereign holder of Bitcoin.

One of the most pivotal occurrences took place in November 2020 when authorities seized 69,370 Bitcoin — then valued at $960 million — from an individual linked to the Silk Road marketplace. Known as “Individual X,” this hacker relinquished their funds after investigators traced the Bitcoin back to transactions associated with Silk Road prior to its shutdown in 2013. Ultimately, a district court judge permitted the sale of this Bitcoin, which had subsequently appreciated to $6.5 billion.

In January 2022, law enforcement seized an additional 94,636 Bitcoin from Ilya Lichtenstein, implicated in the Bitfinex hack. Authorities accessed his cloud storage, which contained critical information needed to identify stolen assets. Although Lichtenstein and his wife, Heather Morgan, were sentenced to prison, discussions continue surrounding the future of these seized funds, as they may potentially be returned to Bitfinex.

Another significant seizure occurred in March 2022 when 51,351 Bitcoin was confiscated from James “Jimmy” Zhong, another individual linked to the Silk Road. This seizure marked one of the largest in U.S. history, with the coins valued at approximately $3.38 billion. Subsequent sales of Bitcoin have taken place, including a sale of 9,861 Bitcoin for $215.7 million in March 2023.

The establishment of the Strategic Bitcoin Reserve signals a shift in government policy regarding holdings of cryptocurrency. While the reserve will initially include only forfeited Bitcoin, plans have been mentioned to explore strategies for further acquisitions without burdening taxpayers. The implications of these developments continue to raise discussions around the management of cryptocurrency assets by the U.S. government.