The United States government has now surpassed MicroStrategy and Tesla as one of the largest holders of Bitcoin, with more than 205,000 BTC owned, Dune data on March 27 shows. This figure is slightly more than 1% of the current circulating supply and is worth $5,734,743,113 at the spot rate.
The United States Government Seized Billions of Bitcoins
According to the tracker, MicroStrategy hold 132,500 BTC while Tesla has 10,725 BTC, less than what the United States government controls.
Earlier, the authorities held at least 215,000 BTC but sent 9,860 BTC to Coinbase in early March 2023. However, this left the government with a large amount of coins seized in separate events over the years.
In the first example, the government arrested 69,369 BTC from a person nicknamed “Individual X” linked to the Silk Road marketplace. Individual X’s address, known as “1HQ3,” was confirmed to be from Silk Road through blockchain analysis.
Reports indicate that federal law enforcement seized the funds on November 3, 2020, after requesting the forfeiture with the court. “Individual X” agreed to divest all of his assets as part of a deal with the government.
In the second case, 94,636 BTC directly connected to the 2016 hack of the cryptocurrency exchange Bitfinex were arrested by the United States authorities.
Ilya Lichtenstein and his wife, Heather Morgan, were also arrested in connection with the case. They allegedly conspired to launder 119,754 BTC in more than 2,000 transactions over five years.
The United States Department of Justice (DoJ) said it was the “largest cryptocurrency seizure to date,” valued at more than $4 billion at spot rates.
At the third case involved James Zhong, who pleaded guilty to unlawfully obtaining over 50,000 Bitcoins from the Silk Road market.
On November 9, 2021, the DoJ searched Zhong’s home in Gainesville, Georgia, and seized more than 51,326 BTC, worth more than $3.36 billion.
Increasing Success In Recovery Rates
While Bitcoin is a pseudonym, it can be misused by malicious agents and used as a tool for money laundering and terrorist financing. And tauthorities increasing their Bitcoin holdings shows the authority’s success in dealing with bad actors and providing reprieve for victims.
Related reading: Bitcoin Hashrate Reaches 400 EH/s As Miners Profit From Bull Market
The seizure of thousands of Bitcoins by governments and law enforcement agencies, especially in the United States, shows the work that goes on behind the scenes to protect users and bring offenders to justice.
While authorities are registering success, regulations are being developed to speed up the process and protect investors against rogue agents, especially as crypto becomes more mainstream.
When crypto and Bitcoin are adopted, major banks, including JP Morgan and Goldman Sachs, have started casualty cryptocurrency trading services for clients.
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