-
A recent FOIA request has unveiled that the US Marshals Service holds only 28,988 Bitcoin, significantly less than the previously estimated 200,000+ coins.
-
This revelation has sparked political controversy, with critics arguing that the US government’s ongoing Bitcoin sell-off undermines its strategic position in the cryptocurrency market.
-
Bitcoin advocates warn that the US’s reduced Bitcoin reserves could lead to geopolitical and economic disadvantages as other nations continue to accumulate their holdings.
FOIA reveals US Marshals hold just 28,988 BTC, sparking political backlash over government Bitcoin sell-offs amid growing global crypto competition.
US Government Faces Criticism Over Significant Bitcoin Sell-Off
According to the latest data confirmed through a Freedom of Information Act (FOIA) request, the US Marshals Service currently holds approximately 28,988 BTC, a figure that starkly contrasts with earlier estimates exceeding 200,000 coins. At Bitcoin’s current trading price of around $118,493, this equates to roughly $3.43 billion in assets, far below the $23.5 billion valuation suggested by blockchain analytics firm Arkham Intelligence.
The FOIA request, initiated in March 2025 and responded to in July, provides a detailed accounting of the agency’s Bitcoin inventory, revealing no recent large-scale auctions that could explain the discrepancy. This transparency challenges long-held assumptions about the US government’s Bitcoin reserves, which were primarily accumulated through seizures related to darknet market takedowns and fraud investigations.
US Government Bitcoin Portfolio. Source: Arkham Intelligence
The revelation has ignited a political backlash, with many questioning the rationale behind the substantial liquidation of these strategic digital assets. The sell-off raises concerns about the US government’s long-term vision and its ability to maintain a competitive edge in the rapidly evolving global cryptocurrency landscape.
Political and Industry Leaders React to US Bitcoin Holdings Disclosure
Prominent figures within the crypto community and political sphere have expressed alarm over the US government’s diminished Bitcoin reserves. Senator Cynthia Lummis, a well-known advocate for cryptocurrency adoption, publicly criticized the sell-off as a “strategic blunder” that could set the United States back in the global Bitcoin race.
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
Meanwhile, Bitcoin Magazine CEO David Bailey’s earlier challenge to journalists to confirm the US government’s Bitcoin holdings has been answered, shedding light on the true scale of the government’s digital asset portfolio. Market analysts like Ran Neuner of Crypto Banter interpret the sell-off as potentially bullish, suggesting that reduced government selling pressure could stabilize or even boost Bitcoin prices.
Neuner noted, “If the US sold off most of its Bitcoin and the price is still at $120K, can you imagine what happens now that they aren’t selling?” This perspective highlights the complex market dynamics influenced by government-held cryptocurrency.
Geopolitical and Economic Implications of the US Bitcoin Sell-Off
Beyond market sentiment, the US’s reduced Bitcoin reserves raise broader geopolitical concerns. Countries such as El Salvador have recently increased their Bitcoin holdings, while institutional investors in Japan and elsewhere continue to expand their portfolios. This trend suggests a growing recognition of Bitcoin’s strategic value on the global stage.
The absence of a coordinated US policy on maintaining a Bitcoin reserve could place the country at a disadvantage economically and technologically. Historical precedents, like Bulgaria’s sale of 213,500 BTC in 2017—which could have significantly alleviated its national debt—serve as cautionary tales about the risks of liquidating large crypto reserves prematurely.
Bitcoin could solve most public debt. https://t.co/sBq81KMkio
— CZ 🔶 BNB (@cz_binance) July 16, 2025
Calls for enhanced oversight and strategic reinvestment in Bitcoin are gaining momentum among policymakers and industry stakeholders. The debate underscores the need for a clear national framework to manage digital assets effectively, balancing transparency with long-term economic interests.
Conclusion
The FOIA disclosure confirming the US Marshals Service’s Bitcoin holdings at just under 29,000 coins has sparked significant debate about the government’s approach to managing seized cryptocurrency. While some view the sell-off as a market-positive move by reducing potential selling pressure, others warn it represents a missed strategic opportunity amid intensifying global competition for Bitcoin dominance. Moving forward, it is imperative for US policymakers to consider a cohesive strategy that safeguards national interests in the evolving digital asset ecosystem.
