The U.S. government doesn’t hold as much bitcoin as everyone thought — and the real number is blowing market watchers, investors and even U.S. lawmakers away.
For years, it was assumed the U.S. government held around 200,000 bitcoin (BTC) worth billions of dollars. That was based on on-chain data from platforms like Arkham Intelligence, and backed up by media coverage and policy discussions around a “bitcoin reserve.”
But according to documents released through a Freedom of Information Act (FOIA) request, the U.S. Marshals Service (USMS) — the agency in charge of holding and auctioning off seized assets — only holds 28,988 BTC worth around $3.4 billion at recent prices.
That’s around 15% of the previous estimate.
The truth came out thanks to independent journalist Lola L33tz, who filed a FOIA request in March 2025. On July 17, she released the official response showing the USMS held way less bitcoin than expected.
“In March, we filed a FOIA request for the amount of bitcoin held by the US Marshal Service,” L33tz posted on social media. “Today, we publish the USMS answer to our FOIA request. As well as the list of bitcoin it holds, totaling 28,988.35643016 BTC.”
The number sent shockwaves and panic, especially since the U.S. government under President Donald Trump had previously announced plans to treat bitcoin as a strategic national asset.
In March 2025, Trump signed an executive order creating a BTC reserve under the Treasury Department to promote financial sovereignty and technological leadership.
“This move harnesses the power of digital assets for national prosperity,” the executive order read.
Among the loudest voices reacting to the news was Senator Cynthia Lummis (R-WY), a vocal bitcoin supporter. She’s alarmed that most of the government’s BTC might have already been sold.
“I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves — leaving just ~29,000 coins,” Lummis said.
She also warned it would damage America’s position in the growing global bitcoin economy.
Deeper analysis, however, suggests the confusion may be because of how the U.S. handles seized bitcoin.
The USMS holds forfeited assets — meaning assets that have been legally transferred to the government. But other federal agencies like the FBI, IRS, DEA, and DOJ also seize bitcoin during investigations and those coins are not government property yet.
They are in legal limbo until a court decides their final status.
So some of the missing BTC might still be sitting with these agencies. According to Arkham Intelligence, the total government-controlled BTC might still be around 198,000 BTC — but not all of it is owned by the U.S. government.
This was highlighted in reports that 94,000 BTC were seized from the Bitfinex hackers, and some or all of that might be returned to the exchange or its creditors.
“(This) explains why the price action was stuck for so long. Bullish,” said Bitcoin Magazine Chairman David Bailey, who had earlier offered a $10,000 bounty for proof of the U.S. government’s actual holdings.
Others speculated that if these coins were sold off quietly, it could have suppressed the price for months or even years.
But on-chain analysts say there’s no evidence of such a massive sale. Arkham Intelligence has not recorded any significant government-linked BTC liquidation events that would support claims of an 85% sell-off.
The confusion has highlighted the lack of transparency in how the U.S. manages digital assets.
Critics argue that if bitcoin is truly a strategic asset — especially in a time of high inflation and national debt — then the government should be more open about what they hold and where.
For now, other U.S. agencies remain silent about how much bitcoin they hold, where they are, and how much is actually the property of the U.S. government, leaving analysts and enthusiasts with only the data that on-chain analysis tools provide.
