The United States government currently holds approximately 198,109 Bitcoin (BTC), valued at $17.7 billion, according to blockchain analytics firm Arkham Intelligence. This significant Bitcoin cache has primarily been accumulated through law enforcement seizures in criminal cases.
A portion of this Bitcoin will form part of the newly established “Strategic Bitcoin Reserve,” created under President Donald Trump’s executive order signed on March 6. The order mandates that any Bitcoin forfeited through criminal or civil asset forfeiture proceedings will be allocated to this reserve. Additionally, federal agencies have been tasked with auditing their Bitcoin holdings to ensure all seized assets are accounted for.
JUST NOW!
— Margo Martin (@MargoMartin47) March 7, 2025
President Trump signs an Executive Order establishing the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile 🇺🇸 pic.twitter.com/N9p2sQknVS
How the U.S. Became the Largest Bitcoin Holder
The U.S. government’s Bitcoin stockpile is a result of major confiscations from cybercriminals and illicit activities. Some of the most notable seizures include:
Silk Road Seizures: In November 2020, U.S. authorities confiscated 69,370 BTC from an individual linked to the infamous Silk Road marketplace. The Department of Justice (DOJ) recently received clearance to liquidate this holding, which has since appreciated to $6.5 billion.
Bitfinex Hack: In January 2022, law enforcement seized 94,636 BTC from Ilya Lichtenstein and his wife, Heather Morgan, who were responsible for the 2016 Bitfinex hack. While Lichtenstein stole 119,754 BTC in total, only 80% was recovered. Some of these funds remain classified as seized, not forfeited, meaning they could potentially be returned to Bitfinex.
Second Silk Road Seizure: In March 2022, authorities recovered 51,351 BTC from James “Jimmy” Zhong. The Bitcoin, valued at $3.38 billion at the time, was hidden in underground safes and even a popcorn tin. The DOJ later sold 9,861 BTC from this haul for $215.7 million in March 2023.
The Future of the U.S. Bitcoin Reserve
While previous administrations liquidated seized Bitcoin, Trump’s executive order prohibits selling BTC within the Strategic Bitcoin Reserve. The White House has further directed the Commerce and Treasury Departments to explore avenues for increasing the reserve without burdening taxpayers.
Also Read: Why Is Bitcoin Dropping? U.S. Reserve Uncertainty, ETF Outflows, and Liquidations
This move signals a potential shift in U.S. policy towards Bitcoin, positioning it as a strategic asset rather than a disposable confiscated commodity. As the world watches, the U.S. could emerge as a key player in shaping Bitcoin’s future within national reserves.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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