According to new FOIA documents, the US government currently owns 28,988 bitcoins, just 15% of the expected total. The revelation quickly sparked fears about a massive sale under President Biden.
Technically, federal agencies still hold 200,000 BTC, but these assets are not government assets. For example, up to 48% of this stock could be returned to Bitfinex creditors alone. This will definitely affect Trump’s backup plans.
How much Bitcoin does the US own?
At this point, it is well known that a long-standing asset attack has made the US government one of the largest Bitcoin holders.
However, the new report shows that this story may not be that simple. Today, the US Former S-Service has confirmed that only 28,988 BTC is held. Instead of $24 billion, this stash is worth just $3.47 billion.
Naturally, this revelation has caused a major freakout in the crypto community. Last year was a bad year for government Bitcoin liquidation around the world, and President Biden sold many of the US reserves.
Soon, numbers like Senator Cynthia Ramis openly questioned whether the massive sales had happened secretly.
To be clear, disaster scenarios are unlikely to occur. Arkham Intelligence, an analytics company on the chain, holds the record for the US government’s Bitcoin Holdings.
Intledge transactions may or may not overestimate the 200,000 figure, but we know if Biden sold all 85% of the government’s BTC.
Seizing vs. Forfeiture: Important Distinction
Nevertheless, this contradiction remains extremely important. As the authors of the report pointed out, the US ex-supported holds all government forfeitured bitcoins.
Over the years, many major crypto offenders have confiscated billions of dollars in BTC, officially creating these asset government assets. This is the aforementioned $3.4 billion, and Uncle Sam can do anything he wants it.
However, many criminals have not confiscated Bitcoin to the US government. These are seized assets, not government property. The President does not necessarily have the authority to do anything with these tokens while they exist within this range.
For example, law enforcement agencies have billions Bitfinex Hack’s BTC total of approximately 94,000 BTC. In some cases, most or all of these assets could be returned to the exchange’s creditors..
If that happens, it is almost half the government’s “stockpile.”
Overall, Trump’s strategic Bitcoin reserve doesn’t work as it’s advertised. The FBI, DEA and other government agencies currently detain many Bitcoin, but the US does not necessarily own it.
Generally, observers can expect the reserve to own more than $3.4 billion. However, the condition for a total of $24 billion was fantasy.
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