US Marshals Service Struggles to Account for Bitcoin Holdings Amid Management Loopholes

The United States Marshals Service (USMS) is facing significant challenges regarding its management of cryptocurrency assets, particularly Bitcoin. As of February 22nd, reports indicate that the agency struggles to ascertain the quantity of Bitcoin currently in its possession, raising suspicions about its operational integrity. This inefficiency may hinder the US government’s potential initiative to create a comprehensive crypto reserve plan as suggested by White House advisor David Sacks.

Currently, the USMS operates using outdated methods, primarily relying on Excel sheets and manual processes, which significantly affect its management capabilities. Experts have warned that operational mishaps could result in the agency losing substantial sums, possibly amounting to billions. Since 2018, the agency has sought partnerships with private firms to enhance its capacity, but delays in the bidding process have repeatedly stalled progress. In 2021, initial contracts awarded to firms like BitGo and Anchorage Digital were rescinded due to non-compliance with small business criteria.

With a revised approach in 2024, the USMS is now directing efforts to establish new contracts aimed at more effectively managing diverse categories of crypto assets, signaling a proactive shift toward better governance in cryptocurrency management.