- The United States has become one of the largest Bitcoin holders in the world.
- The country seized 200,000 Bitcoins, worth $5 billion, from cyber criminals and darknet markets.
- The seized Bitcoins will be liquidated later through the US Marshals Service.
A recent report unveiled the bitcoin holdings of the Federal Government of the United States, accounting for around $5 billion worth of BTC. According to the Wall Street Journal, three recent seizures yielding over 200,000 bitcoins have made the United States one of the largest bitcoin holders in the world.
Prominent Chinese reporter Colin Wu took to X (formerly Twitter) earlier today to reveal the United States’ acquisition of the largest cryptocurrency by market cap. The seized bitcoins were primarily traced to cyber criminals and darknet markets. They were stored in encrypted hardware wallets owned by government agencies, including the U.S. Treasury, the Internal Revenue Service (IRS), and the Justice Department.
Notably, the legal procedures involved in the conversion of the seized bitcoins might span for years. Though the recent addition of these bitcoins has contributed to the total holdings of the government, the stack does not immediately belong to the United States.
The federal government now awaits a final forfeiture order from the court, which would grant it legal ownership of the seized assets. This would then clear the path for liquidation by the U.S. Marshals Service, which is legally responsible for selling assets seized by the federal government.
The U.S. government’s bitcoin stash has raised questions about its approach to crypto regulations. While the US crypto market faces continued regulatory uncertainty amid inconvenient and incomprehensive crypto rules, the government has initiated regulatory measures like implementing Know Your Customer (KYC) and Anti-Money Laundering (AML) policies.
The US government has been widely using intelligence and surveillance operations as a part of tracking illegal ownership of assets, resulting in their seizure. Crypto enthusiasts and investors keenly watch the impact of the recent seizures on the value of the cryptocurrency.
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