Did the U.S. Sell 85% of Its Bitcoin Holdings? Marshals FOIA Report Sparks Debate

A recent report reveals that the U.S. Marshals Service (USMS) currently holds only 28,988 Bitcoin, raising questions about the U.S. government’s past crypto sales.

With Bitcoin price recently hitting a new all-time high of $123,000, the news has sparked debate, particularly as some claim the U.S. may have sold over 85% of its holdings, potentially incurring massive financial losses.

U.S. Marshals Service Bitcoin Holdings and FOIA Report

In a Freedom of Information Act (FOIA) request, journalist L0la L33tz uncovered that the U.S. Marshals Service holds approximately 28,988 BTC, worth approximately $3.4 billion at the current Bitcoin price of $120,000. This is a significant drop from previous estimates, which suggested that the U.S. held nearly 200,000 BTC.

In criminal investigation, forfeited properties including seized crypto must be under the supervision of the USMS.

Nevertheless, L33tz said the USMS was a place primarily filled not with seized property but forfeited property. This difference is significant, since other authorities (such as DEA or FBI) could be in possession of seized property. Hence, although 28,988 BTC was correct in holdings by the USMS, there could be other Bitcoin controlled by other government agencies.

Senator Lummis Breaks Silence on US Bitcoin Holdings

Senator Cynthia Lummis has expressed concern over reports that the U.S. may have sold off a portion of its Bitcoin holdings. Lummis criticized the potential strategic blunder, warning that such decisions could set the U.S. back in the global Bitcoin race.

“I’m alarmed by reports that the U.S. has sold off over 80% of its Bitcoin reserves,” Lummis said. “If this is true, it would push the U.S. behind in the race to dominate the Bitcoin space.”

Her concerns echo those of others who believe that Bitcoin could play a pivotal role in addressing national debts, particularly in light of global economic trends.

Bitcoin Could Offset National Debt

Bitcoin price recent rally also reignited discussions about its potential to help solve national debt problems. In Bulgaria, the country’s Bitcoin holdings, which were seized from a criminal group in 2018, have now grown in value to match nearly 80% of the national debt.

Similarly, the U.S. has a massive national debt, currently standing at around $36.2 trillion. Many believe that Bitcoin could help alleviate this burden if the U.S. were to hold onto its Bitcoin reserves instead of liquidating them prematurely.

Additionally, the GENIUS Act, which Donald Trump has supported in an attempt to speed up the integration of digital assets in the U.S., would put the country in an advantageous position, over competing nations in the worldwide crypto race. Trump has expressed his positive opinion about potential of Bitcoin to address key economic challenges and hence adoption of cryptocurrency may offer a long-awaited competitive edge to the U.S.