The US Marshals Service (USMS) has been a topic of discussion in the crypto community recently, with many speculating about the amount of Bitcoin they hold. A recent Freedom of Information Act (FOIA) request revealed that the government agency actually only has 28,988 BTC in their possession as of March 2025, a far cry from the previously estimated 200,000 BTC. This stash is currently valued at around $3.4 billion, significantly less than the $23.5 billion estimate from blockchain analytics platforms.
This revelation has sparked speculation about whether the US government has been quietly selling off its Bitcoin holdings. Some believe that significant portions of the BTC reserves may have been sold before President Donald Trump took office in January. Despite no visible on-chain activity from US government wallet addresses, it is possible that custodial involvement has masked any selling activity.
Bitcoin analyst Sani, who tracks addresses linked to US government wallets, has not observed any recent transactions from those addresses. However, he pointed out that off-chain swaps facilitated by custodians like Coinbase could be concealing government activity. This has raised concerns among advocates like Senator Cynthia Lummis, who fear that selling off Bitcoin assets could set the US back in the “Bitcoin race.”
It is important to differentiate between seized and forfeited Bitcoin assets when assessing the total holdings of the US government. Many seized assets, such as those tied to ongoing investigations or hacks, may not yet be government property and could reside with other federal agencies like the DEA or FBI. Platforms like Arkham Intelligence may inaccurately represent totals by combining seized and forfeited coins.
Blockchain security expert Taylor Monahan explained that legal custody does not necessarily equate to ownership, as seized coins may still belong to victims and never become US government assets. Ongoing legal processes, including civil forfeiture and IEEPA, play a crucial role in determining the fate of seized property. In many cases, seized coins are ultimately returned to the rightful owner, as seen in a recent case where the FBI is expected to return $40 million in crypto linked to a theft to the victim under a plea agreement.
In conclusion, the true extent of the US government’s Bitcoin holdings remains a topic of debate and speculation within the crypto community. The distinction between seized and forfeited assets, as well as the complexities of legal processes surrounding seized property, highlight the need for a nuanced understanding of the situation.