How the US became the largest sovereign Bitcoin whale through crime-related seizures and strategic policy shifts
Introduction
The US government holds more Bitcoin than any other nation combined, an astonishing crypto treasury amassed not through investment, but through law enforcement seizures. For years, these digital assets were quickly sold off, but that changed drastically in 2025, when Washington decided to hold on to its Bitcoin as a strategic reserve. This article breaks down how much Bitcoin the US government owns, where it came from, and what the new policies mean for investors and markets alike. You’ll get clear, data-driven insight from DOJ filings and blockchain analysis, plus understand the risks and implications of this unique crypto holding.
How Much Bitcoin Does the US Government Own?
The best estimate puts the US government's Bitcoin holdings at around 325,000 BTC, making it the largest sovereign Bitcoin holder globally. This surpasses every other country’s publicly known reserves combined. In October 2025 alone, a single seizure added 127,271 BTC, pushing the government's total Bitcoin portfolio to be worth over $36 billion at current prices.
Unlike traditional reserves like oil or gold, the government never publicly disclosed its total Bitcoin stash. The figure of 325,000 BTC is pieced together from Department of Justice (DOJ) press releases, court documents, and investigative accounting. An executive order signed in March 2025 mandated a full audit of all federally owned digital assets, but this report remains classified, leaving analysts to piece the puzzle together from fragmentary disclosures.
Answer Box: How much Bitcoin does the US government hold?
The US government holds an estimated 325,000 Bitcoin, worth over $36 billion as of late 2025. This figure is based on DOJ press releases and blockchain forensic analysis, although the government has never publicly confirmed the exact total.
Where Did the Government's Bitcoin Come From?
The US government did not buy its Bitcoin on exchanges. Instead, nearly all its holdings come from criminal seizures — assets taken during prosecutions of fraud, hacks, and darknet marketplaces. The three biggest sources are:
- Prince Group Scam Network: In October 2025, the DOJ seized 127,271 BTC linked to Chenz, the head of a Southeast Asian fraud ring conducting a large-scale “pig butchering” scam. This massive seizure alone accounts for over a third of the government’s known Bitcoin holdings.
- Bitfinex Hack (2016): In a landmark case, law enforcement seized approximately 95,000 BTC stolen in the 2016 Bitfinex hack. The perpetrators were arrested after years of laundering the funds, which were eventually retrieved using private keys discovered during the investigation.
- Silk Road Marketplace Theft: Over 50,000 BTC recovered from James "Jimmy" Jong, who stole the Bitcoins from Silk Road via withdrawal exploits and hid the wallets for years before his arrest.
Smaller seizures add to this balance, involving ransomware, tax evasion, and darknet illicit activities. Many forfeitures go through the US Marshals Service, but since 2025, the model shifted—Bitcoin is now retained by agencies like the DOJ or Treasury under new strategic reserve policies.
The Blockchain Verification Angle
While the US government keeps the wallet addresses secret for security, blockchain analytics firms like Glassnode, Chainalysis, and Elliptic track known government-labeled wallets. When big forfeitures are announced, these firms trace transfers into government-controlled addresses, confirming large holdings that nearly match investigative estimates.
From Panic Selling to Strategic Reserve: Changing Government Policy
Until recently, the government’s policy was paper handing — quickly selling seized Bitcoin at auction. Between 2014 and 2023, the US Marshals sold almost 196,000 BTC, generating about $366.5 million in revenue. However, at today’s prices, those coins would be worth nearly $19 billion, implying a catastrophic 98% loss in potential value. This stark figure highlighted a glaring policy failure: treating Bitcoin like a depreciating physical asset rather than a scarce, appreciating digital one.
Data Callout:
- 195,092 BTC sold for $366.5 million (2014-2023)
- Worth $18.9 billion+ at current market rates (2025)
- Represents a 98% missed gain for taxpayers
In response, President Biden signed an executive order in 2025 establishing two entities:
- The Strategic Bitcoin Reserve: The government will hold forfeit Bitcoin indefinitely, treating it as a reserve asset.
- The US Digital Asset Stockpile: This holds other cryptocurrencies seized but allows for their sale.
This marked the end of government Bitcoin sales, signaling the US now views Bitcoin as a strategic economic asset—not just confiscated loot to auction off.
What Does This Mean for the Crypto Market?
The government's past selling created periodic supply shocks, depressing prices when auctions occurred. Now, with the strategic holding policy, that overhang is gone. The government is effectively a "whale" that no longer dumps tokens, reducing downward pressure from forced liquidations.
This shift could:
- Reduce supply shocks from government sales.
- Enhance Bitcoin’s narrative as a store of value at a national level.
- Influence other countries to reconsider how they treat seized crypto assets.
However, the government not publicly disclosing wallet addresses or internal holding structures creates opacity. Also, future administrations could change course, reintroducing sales depending on fiscal needs or policy shifts.
Risks / What Could Go Wrong?
- Policy Reversal: Although current policy favors holding Bitcoin, future governments might resume sales, potentially sparking sell-offs.
- Security Risks: Large government Bitcoin holdings are tempting targets for cyberattacks or insider leaks.
- Regulatory Uncertainty: New laws or regulations could impact how seized cryptocurrency is treated or managed.
- Market Impact: Sudden liquidation by the government, while unlikely now, would flood markets and cause price drops.
- Lack of Transparency: Unknown storage methods and wallets create questions about custody risks and control.
Actionable Summary
- The US government holds an estimated 325,000 BTC worth over $36 billion.
- Nearly all Bitcoin was seized from criminals—fraud rings, hackers, and darknet markets—not acquired by purchase.
- Until 2025, seized Bitcoin was auctioned off, losing taxpayers nearly $19 billion compared to current values.
- A 2025 executive order created a Strategic Bitcoin Reserve to hold Bitcoin permanently, signaling national strategic value.
- This policy shift reduces forced sales, potentially stabilizing market supply and boosting Bitcoin’s status.
Thinking about managing your own crypto assets? Unlike the opaque federal portfolio, individual investors can rely on trusted, transparent exchanges with strong security and clear policies. For competitive signup bonuses, trading fee discounts, and deposit cashbacks, check out curated reliable offers on the Coin Bureau deals page — a valuable resource for getting the best start in crypto investing.
For smarter, timely insights into how government moves impact Bitcoin and altcoin markets — get the full playbook and entries in today's Wolfy Wealth PRO brief. No hype, just deep research on real investor signals.
FAQ
Q1: How does the US government acquire Bitcoin?
Mostly by seizing it from criminals during investigations and prosecutions related to fraud, theft, darknet markets, and ransomware.
Q2: Why doesn't the government sell all its seized Bitcoin?
The 2025 executive order established Bitcoin as a Strategic Reserve Asset to be held, not sold, recognizing its long-term value beyond immediate liquidation.
Q3: Can we verify the government’s Bitcoin holdings on-chain?
Yes, blockchain analytics firms trace wallets known to be linked to the government, providing independent verification, though exact addresses remain confidential.
Q4: How much value did the US lose from past Bitcoin sales?
By selling seized Bitcoin early (2014-2023) instead of holding it, the government forfeited approximately $18.5 billion in potential value gains.
Q5: What happens to other seized cryptocurrencies?
Other digital assets are held in the Digital Asset Stockpile and may still be sold, unlike Bitcoin which is permanently held.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investment carries risks, including price volatility and regulatory uncertainty. Always do your own research or consult a professional before making investment decisions.
By Wolfy Wealth - Empowering crypto investors since 2016
Subscribe to Wolfy Wealth PRO
Disclosure: Authors may be crypto investors mentioned in this newsletter. Wolfy Wealth Crypto newsletter, does not represent an offer to trade securities or other financial instruments. Our analyses, information and investment strategies are for informational purposes only, in order to spread knowledge about the crypto market. Any investments in variable income may cause partial or total loss of the capital used. Therefore, the recipient of this newsletter should always develop their own analyses and investment strategies. In addition, any investment decisions should be based on the investor's risk profile
