TechFlow news — On October 16, according to The Wall Street Journal, the U.S. government is one of the world’s largest holders of Bitcoin. However, unlike other crypto giants, it does not care whether the value of the digital currency rises or falls. This is because the approximately 200,000 Bitcoin held by the U.S. government were seized from cybercriminals and dark web marketplaces. These Bitcoin are primarily stored in encrypted, password-protected hardware wallets controlled by agencies such as the Department of Justice and the Internal Revenue Service (IRS), and are not involved in online trading.
The pace at which the U.S. converts Bitcoin into U.S. dollars has remained extremely slow. It is neither holding Bitcoin long-term nor waiting for prices to rise before selling. Jarod Koopman, Executive Director of the IRS Cyber and Forensic Services division, said: “We don’t participate in market trading. Our actions are essentially determined by the timeline of legal proceedings.”
According to analysis by cryptocurrency firm 21.co of public records, more than 200,000 Bitcoin from just the three most recent seizures have entered government coffers. Even after selling around 20,000 Bitcoin, the government still holds over $5 billion worth of Bitcoin. Legal procedures—from seizing illicit Bitcoin to receiving final court orders to liquidate the tokens—can take several years. In some cases, this benefits the government due to substantial increases in cryptocurrency values.
