Investing.com | Editor Hari G
Published Oct 17, 2023 20:48
The US Treasury is now the world’s largest holder of Bitcoin reserves, with an estimated total of 194,188 BTC tokens, valued at approximately $5.5 billion, according to a report released on Tuesday. This substantial increase in holdings is primarily due to three significant crypto seizures: the Silk Road operation, assets from James Zhong, and the Bitfinex hack. Crypto firm 21.co has suggested that this figure might be understated.
The U.S. Marshals Service is responsible for the sale of these seized properties following court-approved forfeiture judgments. The rise in cryptocurrency culture within the US has led to an uptick in crypto-related crimes, prompting increased scrutiny from the SEC on firms such as Coinbase (NASDAQ:COIN) and Binance.
Public filings released on Tuesday reveal that the U.S. government holds over 200,000 BTC, currently worth around $5.3 billion. These holdings are stored offline in encrypted hardware wallets and are overseen by the Justice Department and IRS. Crypto entity 21.co validated these holdings, which were acquired from the Silk Road operation, Bitfinex Hack, and the James Zhong case in March 2022.
After a final forfeiture verdict, seized assets become government property and are managed by the U.S. Marshals Service. The government liquidated several thousand Bitcoins earlier this year but still retains a considerable amount. Historic sales include Tim Draper’s purchase in 2014, with recent transactions predominantly conducted on platforms like Coinbase.
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Written By: Investing.com
