US Government’s Bitcoin Holdings Surpass $8 Billion

The US government holds approximately 200,000 BTC, valued at $8.4 billion, according to Blockworks.

Less than three months ago, this amount was $5 billion, but since then, the price of Bitcoin has significantly increased.

The 207,189 BTC, confiscated between 2020 and 2022, are linked to the darknet marketplace Silk Road, hacker James Zhong, and Bitfinex hackers. Less than 5% (9,861 BTC) of these funds were sold in March last year.

“The transactions brought in $215 million at an average price of $21,800 per Bitcoin, which is half the current value,” noted Blockworks experts.

Court documents indicate an intention to sell the remaining coins confiscated from James Zhong in November 2021. A year later, he admitted to illegally obtaining them on the Silk Road darknet marketplace.

According to the US Department of Justice, in September 2012, Zhong executed a fraudulent scheme using fake accounts without listing or buying any goods or services on the platform.

Authorities report that he made deposits ranging from 200 to 2,000 BTC, then quickly withdrew funds in multiples. Zhong initiated over 140 such transactions, amassing a total of 50,000 BTC.

“Approximately 41,491 BTC remain, which the government will liquidate in four batches over the calendar year. […] The second round of liquidations will not occur until Zhong is sentenced,” the documents state.

At the time of writing, the remaining 41,491 BTC are valued at ~$1.8 billion. 

Blockworks specialists speculated that in the coming months, the US government will again sell Bitcoins associated with Silk Road. 

In July, 9,824 BTC seized from the darknet marketplace were moved.

In December, a US Appeals Court upheld the confiscation of 69,370 BTC belonging to Silk Road.

The decision also applies to an equivalent amount of Bitcoin Cash, Bitcoin SV, and Bitcoin Gold forks.