How Much Bitcoin Does the US Hold, and Where Did It Come From?

The United States currently holds a significant stash of Bitcoin, approximately 198,109 BTC, valued at around $17.7 billion. This Bitcoin primarily came from criminal and civil asset forfeiture proceedings, marking the U.S. government as the world’s largest nation-state holder of Bitcoin. A portion of this Bitcoin will now form part of the U.S. Strategic Bitcoin Reserve (SBR), established by an executive order signed by President Donald Trump on March 6, 2025.

This move is part of a broader strategy to integrate digital assets into the country’s financial framework, while simultaneously ensuring that the Bitcoin reserves are kept secure and are not sold for profit. Here's a closer look at the history behind the U.S. government's Bitcoin holdings and how it came to control such a large amount of cryptocurrency.

A Timeline of Major Bitcoin Seizures by the U.S. Government

69,370 BTC from the Silk Road Seizure (November 2020)

In one of the earliest and most significant Bitcoin seizures, the U.S. government took control of 69,370 BTC in November 2020. These Bitcoins were tied to the Silk Road black market, a notorious online platform that facilitated the illegal sale of drugs and other contraband. The hacker behind this particular seizure, known as "Individual X," was caught after U.S. authorities traced the stolen Bitcoin back to addresses used in connection with the Silk Road’s operations before its shutdown in 2013.

This seizure marked the largest crypto confiscation by the U.S. at the time, valued at approximately $960 million. By December 2024, a district court judge ruled that the Bitcoin should be forfeited to the government. The value of the seized Bitcoin had risen significantly, reaching $6.5 billion by the time the forfeiture was finalized.

94,636 BTC from the Bitfinex Hack (January 2022)

In January 2022, the U.S. government seized 94,636 BTC from Ilya Lichtenstein, who had hacked the Bitfinex exchange in 2016. Lichtenstein, alongside his wife Heather Morgan, laundered much of the stolen Bitcoin, but the U.S. authorities successfully seized about 80% of the total stolen funds. These funds were discovered in a cloud storage account, which included private keys to more than 2,000 cryptocurrency wallet addresses.

The Bitcoin was valued at over $3.2 billion at the time of the seizure. While these Bitcoin were seized by U.S. law enforcement, there is still uncertainty about whether they will be forfeited to the government or returned to Bitfinex, as the funds were not directly forfeited under asset forfeiture laws.

51,351 BTC from a Second Silk Road Seizure (March 2022)

In another significant case, the U.S. government seized 51,351 BTC from James Zhong, a hacker linked to the Silk Road marketplace. The Bitcoin was discovered in 2022, hidden in an underground safe and a popcorn tin at Zhong’s home. This seizure occurred months after Zhong had been caught and led to one of the largest Bitcoin seizures in U.S. history, valued at around $3.38 billion at the time.

The U.S. Government’s Bitcoin Sales and Holdings

In March 2023, the U.S. government sold 9,861 BTC, worth $215.7 million, as part of the sale of seized funds from James Zhong’s Bitcoin cache. This marked one of the few instances where the U.S. government liquidated its Bitcoin holdings. The remaining Bitcoin from Zhong’s forfeiture was initially set to be sold in four more batches throughout 2023, but those sales did not occur as planned.

In January 2024, the Department of Justice was given permission to sell the full 198,109 BTC seized from Silk Road, but the sale did not happen before President Trump took office in January 2025. Under the new administration, the government’s Bitcoin holdings are now set to be preserved in the Strategic Bitcoin Reserve, with no plans to sell them. This marks a departure from the previous administration’s approach, which had involved selling seized assets.

The Formation of the U.S. Strategic Bitcoin Reserve

The U.S. government’s Bitcoin holdings will now be used to fund the Strategic Bitcoin Reserve, which will initially be capitalized with Bitcoin forfeited through criminal or civil asset forfeiture proceedings. As outlined in the executive order signed by President Trump, the reserve will hold Bitcoin that is forfeited to the U.S. Treasury, meaning it will be comprised of seized and forfeited Bitcoin rather than new purchases by the government.

The reserve will not be sold for short-term profits. Instead, it will be treated as a store of value, ensuring the Bitcoin remains in place for long-term security. Additionally, the U.S. Treasury and the Commerce Secretary will explore potential ways to add to the reserve, though any purchases will be budget-neutral and will not cost U.S. taxpayers any additional funds.

The U.S. and Bitcoin’s Growing Role in Global Finance

With its move to establish the Strategic Bitcoin Reserve, the U.S. is not only solidifying its position as the largest nation-state holder of Bitcoin but is also setting a precedent for the future role of digital assets in national economies. The reserve will serve as a safeguard for the country’s digital asset holdings, marking a significant step in recognizing the potential of Bitcoin as a reserve asset.

In conclusion, the U.S. government's large Bitcoin holdings come from a combination of criminal seizures, civil asset forfeitures, and major cybercrime investigations. With the creation of the Strategic Bitcoin Reserve, the U.S. government is positioning itself as a long-term holder of Bitcoin, significantly shaping the future of digital assets on the global stage.