US Gov’s $12B Bitcoin Trove Still Frozen: 198,000 BTC Gathers Dust (And Value)
The US government's massive Bitcoin stockpile remains locked in digital vaults—untouched, unmoved, and quietly appreciating while bureaucrats debate what to do with it.
The hodl heard 'round the world
That 198,000 BTC stash seized from dark web busts now represents one of the largest sovereign crypto reserves globally. Yet unlike El Salvador's aggressive Bitcoin strategy, Washington treats its crypto windfall like radioactive waste—handled with hazmat suits and indecision.
Paper hands need not apply
While retail investors panic-sell every 10% dip, Uncle Sam's diamond-handed restraint would make Satoshi proud. The government's unrealized gains could fund multiple moon missions—if they ever figure out how to spend it without crashing the market.
One Treasury official joked they're waiting for Bitcoin to hit "retirement account levels" before selling. Meanwhile, Wall Street banks still can't decide if crypto is a scam or their next profit center—classic finance whiplash.
Breakdown Of US Government Bitcoin Holdings
According to data from Arkham Intelligence, a significant portion of the US Government’s 198,000 BTC holdings—worth approximately $23.5 billion—originates from two major historical seizures: the Bitfinex hack and the Silk Road investigation.
The largest single source is the 2022 seizure from Ilya Lichtenstein and Heather ‘Razzlekhan’ Morgan, who were arrested six years after the 2016 Bitfinex hack. Authorities seized 94,000 BTC from the couple, with additional recoveries bringing the total to 114,599 BTC, now worth $13.65 billion. These funds were originally stolen from Bitfinex customers and, pending legal proceedings, may be returned to victims through restitution.
Another major contributor is the seizure of 69,369 BTC (currently $8.26 billion) from ‘Individual X’ in 2020. This person was believed to have exploited a vulnerability to access Silk Road funds years after the darknet marketplace was shut down. The US Government took possession of the BTC after ‘Individual X’ voluntarily forfeited the assets in a landmark case.
Arkham also identified other sources of BTC held by US authorities, including smaller seizures from criminal operations and forfeitures resulting from legal settlements. These holdings are spread across wallets linked to agencies such as the US Marshals Service, FBI, and DOJ.
This transparency debunks recent rumors about government sell-offs and provides clarity to the public. While the bulk of the seized BTC remains dormant, market participants are closely watching for signs of movement, given the significant potential market impact if liquidated. For now, however, all of these funds remain untouched, offering a buffer of reassurance as Bitcoin hovers NEAR its all-time highs.
Price Analysis: Consolidation Persists Between Key Technical Levels
Bitcoin continues to trade within a narrow range between $115,724 and $122,077, as shown in the 4-hour chart. This sideways movement follows the strong rally earlier in July that pushed BTC toward new all-time highs. Since then, the price has failed to break above the $122,077 resistance, while buyers have managed to defend the $115,724 support multiple times.
The chart also shows that BTC is hovering around the 50-period simple moving average (SMA) at $118,412, slightly above the 100-SMA ($116,614) and the 200-SMA ($111,678), which continue to slope upward—a signal that the macro trend remains bullish. However, declining volume during consolidation reflects indecision in the market.
A breakout above $122,077 could trigger renewed momentum toward the next psychological level at $125,000. On the downside, losing the $115,724 support may lead to a deeper retracement, with the 100-SMA and 200-SMA acting as dynamic support zones.
Featured image from Dall-E, chart from TradingView
