Arkham Smashes Bitcoin FUD: US Government’s 198K BTC Hoard Revealed

Panic merchants take note—the US Treasury's Bitcoin vault isn't emptying anytime soon.

Despite market jitters, blockchain sleuths at Arkham confirm Uncle Sam's cold wallets still hold a staggering 198,000 BTC. That's enough to make any Wall Street hedge fund blush.

Funny how governments criticize crypto volatility while sitting on billions in digital assets. Maybe they're just waiting for the next ATH to cash out—like every other 'long-term investor' suddenly needing liquidity.

Arkham Bitcoin Report Clears Bitcoin Dump Rumors and Market Fear

The panic surrounding US Government crypto assets began when a Freedom of Information Act request revealed that the US Marshals Service holds around 28,988 BTC worth $3.44 billion. This figure initially sparked fears that the government had sold the majority of its Bitcoin holdings, triggering significant Bitcoin market fear across the cryptocurrency community and also causing widespread concern.

DID THE US GOVERNMENT JUST SELL 170,000 BTC ($20 BILLION)?

No. This Freedom of Information Request response from the US Marshals Service (USMS) cites them as holding 28,988 BTC ($3.4B), but other departments of the US Government also seize and hold Bitcoin, including the FBI,… https://t.co/8kpjwyKcT9 pic.twitter.com/uB7EejUCVz

However, Arkham’s comprehensive analysis shows that various federal agencies, including the FBI, IRS, DEA, and also the Department of Justice, collectively hold 198,012 BTC. The Arkham bitcoin report confirms that none of these assets have been moved in the past four months, indicating the government remains committed to maintaining its substantial US Bitcoin holdings at the time of writing.

Criminal Seizures Drive Government Bitcoin Reserves

Most of the US Government crypto assets actually originate from major criminal investigations and seizures. In the largest seizure to date, authorities recovered 114,599 BTC from Ilya Lichtenstein and Heather Morgan, who authorities charged in connection with the 2016 Bitfinex hack. Additionally, authorities secured 94,643 BTC from two Silk Road-related operations, including 51,680 BTC from James Zhong and also some additional holdings.

$342M of US Government BTC was seized from Ryan Farace in February 2021.

Ryan Farace was a drug dealer through darknet marketplaces. 2,874.9 Bitcoin was seized while he was in prison, from a third party that his father sent the BTC to.

The BTC is held in this address:… pic.twitter.com/VtJTiU5hco

These seizures demonstrate how law enforcement actions have accumulated significant Bitcoin holdings over time, contributing to the government’s current substantial US Bitcoin holdings position right now.

Strategic Sales Through Coinbase Prime

While the Arkham Bitcoin report confirms substantial reserves remain intact, the government has actually conducted strategic sales through Coinbase Prime. In the past two years, the US sold 9,861 BTC in March 2023, followed by two separate 10,000 BTC transactions in August and also December 2024. These sales, however, represent only a small fraction of total holdings, helping to calm Bitcoin dump rumors that suggested mass liquidation was happening.

The data shows that despite these controlled sales, the Core US Bitcoin holdings remain largely untouched, maintaining the government’s position as one of the world’s largest institutional Bitcoin holders even after these transactions.