Journalist Uncovers Actual Bitcoin Holdings of US Authorities

The US Marshals Service holds 28,988 BTC, significantly less than previously estimated. This information was revealed in a response to a FOIA request submitted by journalist L0la L33tz.

Hey @DavidFBailey, man of your word, looks like you owe me $10,000 https://t.co/4zE0pugqpr pic.twitter.com/LSYpkheJGH

— L0la L33tz (@L0laL33tz) July 16, 2025

She acted on an assignment from Bitcoin Magazine chairman David Bailey, who promised $10,000 for confirmation of the government’s Bitcoin holdings.

L0la L33tz clarified the distinction between seized and confiscated assets. The US Marshals Service manages confiscated coins—those transferred to state ownership by court decision. Only these assets can be sold by the government.

According to her, popular on-chain trackers often provide inaccurate data as they include seized bitcoins. Agencies like the FBI may manage these assets, but they cannot be sold until a court verdict is reached.

As an example, L0la L33tz cited 94,000 BTC from the Bitfinex exchange hack. Trackers attribute them to the government, but a confiscation decision has yet to be made. This means market fears of a potential coin sale are premature.

The Marshals Service sells assets through public auctions. As the agency has not announced a new sale, all 28,988 BTC remain in its balance.

Earlier, Arkham identified US government wallets holding bitcoins worth approximately $23.5 billion.

The news drew criticism from digital gold accumulation advocates. Senator Cynthia Lummis called the situation a “strategic mistake.”

I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves—leaving just ~29,000 coins.

If true, this is a total strategic blunder and sets the United States back years in the bitcoin race. https://t.co/ciYf1uhy0x

— Senator Cynthia Lummis (@SenLummis) July 16, 2025

“I’m alarmed by reports that the U.S. has sold off over 80% of its reserves. If true, this is a total strategic blunder and sets the United States back years in the bitcoin race,” she stated.

Back in March, US President Donald Trump tasked a working group on cryptocurrencies to consider establishing a national reserve of digital assets.