Uncovering U.S. Marshals Service Bitcoin Holdings
An independent journalist’s recent inquiry under the Freedom of Information Act (FOIA) has uncovered that the U.S. Marshals Service (USMS), responsible for overseeing seized digital assets, currently holds 28,988 BTC. As of July 2025, this trove is valued at approximately $3.44 billion. There is a broader belief among those in the crypto community that the U.S. government possesses nearly 200,000 BTC, which has generated significant speculation about the actual extent of these assets.
Details from the FOIA Request
In the report, journalist L0laL33tz details the findings from the FOIA request submitted in March, stating,
“Today, we publish the USMS answer to our FOIA request, as well as the list of bitcoin it holds, totaling 28,988.35643016 BTC.”
This revelation raises questions about the reported figure of 198,012 BTC tracked by blockchain analytical firms such as Arkham Intelligence, with some skeptics doubting whether the actual amount held by the government is as high as claimed.
Historical Context and Transparency Challenges
Historically, the USMS has been the primary entity tasked with managing and auctioning off cryptocurrencies seized in an array of criminal investigations involving entities like the FBI and the Department of Justice. However, the number suggests that the USMS does not encapsulate the total bitcoin assets allegedly held by the government.
In a test of transparency, David Bailey, chief of Bitcoin Magazine, offered a challenge, promising $10,000 to any journalist capable of confirming the USMS’s current bitcoin holdings. L0laL33tz sarcastically reminded Bailey of his pledge, citing Bailey’s response that reflected doubts about whether the reported totals capture the complete picture, implying that the Marshals may not hold all the assets they are purported to.
Questions of Verification and Custodianship
Bailey also inquired about the source of the reported figures and asked for further documentation. He hinted that if verified, he would transfer $10,000 in BTC the same day. Another individual commented on the situation, dismissing conspiracy theories and asserting that Arkham tracks wallets on-chain. Yet, Bailey noted that such tracking doesn’t account for potential transactions made by custodians.
The USMS manages cryptocurrencies seized in connection with various criminal activities, including infamous cases like Silk Road and the Bitfinex hack, with different federal agencies transferring these assets for custody. It is essential to note that certain seized assets may still be under the control of respective agencies pending legal actions.
External Custodians and Regulatory Concerns
Furthermore, the U.S. government has engaged external custodians such as Coinbase and Anchorage Digital since 2021 and 2024 respectively, to oversee these assets. This arrangement could potentially explain some discrepancies in the reported bitcoin holdings. Critics emphasize that without a clear, blockchain-verified audit from the government, confidence in the accuracy of the claimed holdings remains elusive, compounded by regulations like the Strategic Bitcoin Reserve (SBR) initiated by former President Trump.
Concerns Over Asset Management
The cryptic nature of asset management has also been underscored by Coindesk, which reported problems with the USMS’s ability to track its bitcoin effectively. Chip Borman from Addx Corporation remarked,
“As far as I’m aware, the USMS is currently managing this with individual keystrokes in an Excel spreadsheet,”
warning of the significant risks of error involved in such a rudimentary system. This uncertainty raises alarms regarding potential financial miscalculations that could have widespread implications.
