US government has more Bitcoin than MicroStrategy, Tesla combined
The US government has now surpassed MicroStrategy and Tesla as one of the largest holders of Bitcoin, with over 205,000 BTC in its possession, Dune data on March 27 shows. This figure is just over 1% of today’s circulating supply and is worth $5,734,743,113 at spot rates.
US government seizes billions worth of Bitcoin
According to trackers, MicroStrategy holder 132,500 BTC while Tesla owns 10,725 BTC, less than what the US government controls.
Previously, the government held at least 215,000 BTC, but sent 9,860 BTC to Coinbase in early March 2023. Still, this leaves the government with a massive stash of coins they have seized in separate incidents over the years.
In the first instance, the government seized 69,369 BTC from a person they called “Individual X” linked to the Silk Road marketplace. Individual X’s address, known as “1HQ3,” was confirmed to originate from the Silk Road through blockchain analysis.
Reports indicate that federal law enforcement seized the funds on November 3, 2020, after seeking forfeiture in the courts. “Individual X” agreed to forfeit all assets as part of a deal with the government.
In the second half, 94,636 BTC directly connected until the 2016 hack of cryptocurrency exchange Bitfinex was seized by US 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 over 2,000 transactions within five years.
The US Department of Justice (DoJ) said this was the “largest cryptocurrency seizure to date,” valued at more than $4 billion at spot rates.
The third case involved James Zhong, who pleaded guilty to illegally obtaining over 50,000 Bitcoins from the Silk Road marketplace.
On November 9, 2021, the DoJ searched Zhong’s house in Gainesville, Georgia and seized more than 51,326 BTC, valued at over $3.36 billion.
Increasing success in recovery rate
While Bitcoin is pseudonymous, it can also be misused by malicious agents and used as a tool for money laundering and terrorist financing. And TThe government’s growing Bitcoin holdings reflect the authorities’ success in dealing with bad actors and providing a reprieve for victims.
Related Reading: Bitcoin Hashrate Hits 400 EH/s as Miners Profit in Bull Market
The seizure of thousands of Bitcoins by governments and law enforcement agencies, particularly in the United States, points to the work being done behind the scenes to protect users and bring violators to justice.
While authorities are recording success, regulations are being developed to streamline processes and cushion investors against rogue agents, especially as crypto becomes more mainstream.
As crypto and Bitcoin are adopted, major banks including JP Morgan and Goldman Sachs have started Offering cryptocurrency trading services to its customers.
Feature image from Canva, chart from TradingView
