decrypt.co
In the last decade, the U.S. has seized tens of thousands of Bitcoin from several criminal enterprises, most notably the dark web marketplace Silk Road and the hackers who stole billions of dollars worth of digital assets from crypto exchange Bitfinex in 2016.
As of writing, the American government possesses over 194,000 Bitcoin, according to on-chain wallet data compiled by asset management firm 21.co on Dune.
That sum has appreciated significantly since Bitcoin’s price began climbing in the fall. In September, the U.S. government’s Bitcoin holdings were worth some $5 billion. At writing, thanks to the token’s phenomenal comeback, that same quantity of BTC is now worth $12.09 billion.
You read that correctly: In a matter of months, without lifting a finger, the federal government has reaped over $7 billion in pure Bitcoin profit.
Despite the current, frosty state of the American government’s relationship with Bitcoin and cryptocurrency more broadly, the United States is unambiguously one of the largest BTC bag holders on Earth.
The nation’s government currently holds about 1% of all BTC currently in circulation. Only crypto exchange Binance and pseudonymous Bitcoin creator Satoshi Nakamoto appear to hold more.
At several points, the U.S. government has sold off small portions of its Bitcoin holdings. In January, it announced its intention to sell $117 million worth of BTC seized from a convicted drug trafficker who operated on Silk Road.
It remains unclear whether American officials in charge of the government’s crypto holdings are attempting to maximize the stash’s value by selling off at strategically opportune moments.
Yesterday, amid a market frenzy that saw Bitcoin’s price climb over 11% within hours, the U.S. government moved almost $1 billion worth of seized BTC associated with the Bitfinex hack to another wallet containing more funds, according to Arkham Intelligence.
Edited by Andrew Hayward