The US federal government holds bitcoins with a combined value of over $5 billion. This makes the US government one of the largest holders of the first cryptocurrency.
The American "crypto treasury" has filled up as a result of the fight against cybercrime and withdrawal from the "black market", writes The Wall Street Journal. Virtual coins are stored on hardware wallets that are under the control of US federal agencies, including the Department of Justice and the Internal Revenue Service.
Thanks to the active actions of law enforcement agencies, the "crypto treasury" has increased to more than 200 thousand BTC - this is more than 1% of the bitcoins that have ever been mined. Since there is such a large amount of virtual coins in the hands of officials, the crypto community fears the impact of the sale of these assets on the BTC rate.
Despite the fact that many coins have increased in price tenfold since their withdrawal, the US authorities do not keep them for hedging risks or as investments. Government actions are explained not by market conditions, but by bureaucratic delays.
In order to sell cryptocurrency, the government must overcome lengthy legal procedures. Immediately after a crypto wallet is withdrawn, its contents are not automatically transferred to US government accounts.
The appropriate decision must be made by the court - the relevant process can last for years, and as a result of the adopted decision, the cryptocurrency is handed over to the US Marshals Service. It is this agency that is responsible for the liquidation of confiscated assets. And only after that, cryptocurrency can be sold on exchanges or at an auction.
For example, it took six years to recover 95 bitcoins stolen by IT entrepreneur Ilya Lichtenstein and his wife Heather Morgan during the Bitfinex hack in 2016. The corresponding decision was made only after the arrest of the couple in 2022.
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