U.S. Seeks Forfeiture of $2.4M in Bitcoin Seized from Chaos Ransomware Group

20.2 BTC Seized by FBI Could Join U.S. Strategic Bitcoin Reserve

The United States government has filed a civil forfeiture complaint to claim 20.2 Bitcoin (worth approximately $2.4 million), seized by the FBI from an address linked to the Chaos ransomware group — part of a broader push to expand its Strategic Bitcoin Reserve.

Filed in the Northern District of Texas on July 25, the complaint alleges that the seized funds are proceeds of criminal ransomware activity, according to a statement released by the Texas U.S. Attorney’s Office.

Background: Chaos Ransomware Group and Seizure

The Bitcoin was confiscated by FBI Dallas agents on April 15, based on evidence that it was connected to ransomware attacks carried out by the Chaos group. The government argues the BTC was obtained through “unlawful activity”, and is therefore subject to civil forfeiture.

“This action reflects our commitment to trace, seize, and forfeit cryptocurrency tied to criminal enterprises,” said the U.S. Attorney’s Office.

Source: Texas US Attorney’s Office

The forfeiture request aligns with a March 6 executive order issued by President Donald Trump, mandating that seized crypto assets be redirected into a U.S. Strategic Bitcoin Reserve — a first-of-its-kind national asset strategy for digital currencies.

How Much Bitcoin Does the U.S. Government Really Hold?

While the U.S. is frequently cited as one of the largest holders of Bitcoin — allegedly owning more than 198,000 BTC from years of criminal seizures — some recent reports suggest the actual figures are less clear.

A Freedom of Information Act (FOIA) request submitted by independent journalist L0la L33tz to the Department of Justice revealed that the U.S. Marshals Service (USMS) currently holds only 28,988 BTC — far fewer than the 198K often reported by data firms like Arkham Intelligence and Nansen.

However, the discrepancy may be due to how U.S. agencies distribute custody:

“The USMS figure doesn’t include assets held by other federal entities like the FBI, DEA, or DOJ,” L33tz explained on X.

“Many of these wallets contain seized assets that haven’t yet been forfeited, meaning they can’t be legally sold or moved.”

Source: L0la L33tz

Arkham Defends Its Data

Blockchain analytics firm Arkham Intelligence maintains that its tracking shows over 198,000 BTC held in U.S.-associated wallets — none of which have moved in the last four months.

“Multiple U.S. government arms hold Bitcoin — including the FBI, DOJ, DEA, and various U.S. Attorney’s Offices,” Arkham stated in a July 23 post.

Yet critics argue that Arkham and similar trackers may not clearly differentiate between “seized” and “forfeited” Bitcoin — a critical legal distinction when assessing whether the government can actually use or sell the assets.

Strategic Bitcoin Reserve Expands, State Governments Join In

The potential addition of 20.2 BTC to federal holdings may be small in dollar terms, but it’s symbolically important. It further legitimizes the U.S. government’s Bitcoin asset strategy, which is now being echoed by dozens of U.S. states.

According to tracking site BitcoinLaws.org, at least 30 states have introduced proposals to establish their own state-level Bitcoin reserves. However, only Arizona, Texas, and New Hampshire have successfully passed legislation as of July 29, 2025.

Source: Arkham

Why This Matters

This latest forfeiture effort underscores several key developments:

Federal adoption of Bitcoin is becoming institutionalized through policy, executive orders, and civil asset seizures.

Transparency concerns remain, as government wallets are often opaque, fragmented across agencies, and not subject to a unified reporting standard.

Legal clarity is still evolving — “seized” doesn’t always mean “forfeited,” and not all coins are immediately available for sale or use.

As the U.S. prepares to navigate the next phase of crypto regulation and digital asset strategy, expect further attention on how it manages, safeguards, and deploys its growing crypto stockpile.

Disclaimer: The content on this website is for informational purposes only and does not constitute financial or investment advice. We do not endorse any project or product. Readers should conduct their own research and assume full responsibility for their decisions. We are not liable for any loss or damage arising from reliance on the information provided. Crypto investments carry risks.