Crypto Sen. Cynthia Ramis responds to reports that the US government sells more than 80% of its Bitcoin Stash, calling the move a strategic failure.
Yesterday, the Crypto community was stirred by reports claiming that the US government had offloaded a significant portion of nearly 200,000 BTC stashes. Some sources said the sale reduced the government’s Bitcoin Holdings to just 28,988 BTC, down 85% from 198,012 BTC held earlier this year.
Senator Ramis responds
For context, the report emerges after the FOIA response from the US Former s-Service (USMS) surfaced online, suggesting that the agency holds around 29,000 BTC.
US Government’s current Bitcoin holdings
Meanwhile, the claim that the US government sold most of its Bitcoin holdings misinterprets FOIA’s response.
The response showed that USM held around 29,000 BTC, while Arkham Intelligence’s on-chain data shows that the US government still has around 200,000 BTC. The government acquired these assets through criminal and civil confiscation.
The tracked public wallet shows that the government still holds a total of 198,012 bitcoins, currently worth $234.9 billion. The US plans to hold them for several years, anticipating future prices rises and helping to use revenue to offset national debt.
President Donald Trump outlined the strategy while signing an executive order earlier this year. He ordered the BTC token to be held in strategic reserves.
Interestingly, Trump intends to grow US Bitcoin Stash over the years through budget-neutral methods. Following the order, the President directed the Commerce and Treasury to propose ways for the government to gain more BTC without spending any costs on taxpayers.
In the meantime, the government’s portfolio is currently worth $242.5 billion. It consists of multiple crypto assets including USD347 million, 59,951 ETH ($202.14 million), 750 WBTC ($88.94 million), and 40,293 BNB ($28.7 million).
US Government Cryptocurrency
Journalists deal with misrepresentation of FOIA responses
However, Lola L33TZ, an independent journalist who filed the FOIA request, addressed the public misconceptions of the USMS responses, and the references to Arkham Intelligence Data in particular.
Laura revealed the distinction between seized and confiscated cryptocurrencies. She explained that the seized assets are held by law enforcement agencies such as the FBI following actions acknowledging the court. In contrast, forfeitures are usually legally declared as government property, through judicial arbitration or settlement.
Essentially, the rest of the Bitcoin is likely still in seizures, but has not yet been confiscated, explaining why it is not in USMS custody or why it is not included in the FOIA disclosure. In particular, Lola emphasized that USMS is the leading custodian of forfeitured Bitcoin, not the BTC held by all governments.
“This does not mean that the US government sold Bitcoin.” Laura has been added. “That means that what these US finance sites estimates do not seem to distinguish between seized coins and confiscated coins, so it’s likely to be wrong.”
