Arkham clarified that the U.S. government still holds at least 198,000 BTC across multiple agencies

Arkham has cleared up the confusion around the U.S. government’s cryptocurrency holdings after alarm spread throughout the cryptocurrency community following the release of public records from the U.S. Marshals Service.

The blockchain data tracking firm, Arkham Intelligence, has compiled data showing the U.S. government’s Bitcoin holdings across several agencies to clarify the confusion around the rumors that the U.S. government had depleted its Bitcoin reserves.

The U.S. government still holds over 198,000 BTC, Arkham says

Public records released by the U.S. Marshals Service (USMS) sparked a wave of confusion and alarm over the size of the U.S. government’s Bitcoin holdings.

The document, obtained via a Freedom of Information Act (FOIA) request and dated July 15, states that the USMS currently holds 28,988.356 BTC, valued at approximately $3.44B.

However, the blockchain intelligence firm, Arkham, has clarified that the U.S. government still holds at least 198,000 BTC, worth roughly $23.5B, across multiple agencies and wallets. The company also asserted that none of the funds have moved in the past four months.

U.S. Senator Cynthia Lummis responded on X to the initial claim of dwindling reserves with concern.

“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,” she wrote.

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

But according to Arkham, the FOIA request only accounted for holdings by the US Marshals Service, which traditionally manages seized assets and conducts public auctions.

Other agencies like the FBI, IRS, DEA, and Department of Justice also seize Bitcoin but do not regularly disclose their crypto balances, making centralized tracking nearly impossible.

Arkham has identified at least 198,012 BTC under government control, spread across several high-profile criminal cases. The largest share of the reserve, totaling 114,599 BTC, which is worth about $13.65B was seized from Ilya Lichtenstein and Heather Morgan, or “Razzlekhan,” in connection with the 2016 Bitfinex hack.

Another major holding includes 94,643 BTC seized in two separate Silk Road-related cases. 51,680 BTC from James Zhong, who stole funds from the Silk Road marketplace, and 69,370 BTC previously seized from ‘Individual X,’ believed to have hacked Silk Road.

Additional seizures include $81.25M in BTC from Alameda Research’s Binance accounts after the FTX collapse and $79.49M in BTC from HashFlare scammers Sergei Potapenko and Ivan Turogin.

Comprehensive data is limited

The FOIA request, which was filed by independent journalist, “L0la L33tz” specifically asked the USMS for “the amount of Bitcoin held by the U.S. Marshals Service.” In return, she received a detailed spreadsheet, case breakdowns, and a total of 28,988.35643016 BTC as of July 15, 2025.

The letter, sent by the Office of General Counsel, confirmed the data came from the Asset Forfeiture Division, though some lines were redacted for legal reasons.

The ensuing controversy shows that the lack of a centralized database for all U.S. government BTC holdings is a critical barrier to transparency. For years, analysts have estimated the total government stash to hover around 200,000 BTC, but this number has been difficult to verify given the involvement of multiple law enforcement and regulatory bodies with differing reporting practices.

L33tz has already filed a second FOIA request to determine whether the government’s holdings are being managed through Coinbase Prime, a platform often used to liquidate seized assets.

Arkham’s data supports that Coinbase has been the venue for recent U.S. government BTC sales, including the sale of 9,861 BTC from James Zhong in March of 2023, totaling about $215M. In August 2024, the U.S. government sold 10,000 BTC from James Zhong, which is equivalent to $593.9M.

Another 10,000 BTC, approximately $968.6M from James Zhong, was sold in December of 2024. 58.7 BTC from Ryan Farace was sold in July 2024.

Despite these sales, Arkham insists that the U.S. government retains significant Bitcoin reserves. For instance, the Bitfinex and Silk Road cases alone account for over 150,000 BTC. However, until more agencies provide official disclosures, the exact total may remain contested.