The U.S. government is facing difficulties in tracking and managing the amount of Bitcoin it holds. The primary law enforcement agency responsible, the U.S. Marshals Service (USMS), cannot accurately confirm the number of BTC on hand, raising public questions about the government's ability to oversee digital assets.
Not Knowing How Much Bitcoin You Hold
Senator Cynthia Lummis has repeatedly called for #USMS to provide accurate figures on the amount of Bitcoin owned by the U.S. government. However, USMS admits it does not have specific numbers. This is not just an administrative issue but also exposes serious management gaps.
Before 2019, USMS only handled a small number of crypto assets, leaving other agencies like the IRS-CI to find ways to store them. This loose management approach led to many issues, including losing control of an Ethereum wallet in 2022.
Storing Bitcoin in an Excel file, transferring wallet addresses via email?
USMS's crypto handling process has been criticized as unsafe. According to Chip Borman, head of Addx Corporation, USMS even stored Bitcoin wallet addresses in an Excel file, which could lead to severe losses. When needing to transfer Bitcoin to a secure wallet, USMS could take weeks to provide the address, and they send this information via email without encryption or any security measures.
Meanwhile, the IRS-CI implements a stricter process, requiring video call verification and only sending wallet addresses in encrypted files. This difference shows that USMS is not truly ready to manage crypto professionally.
Dumping Bitcoin Before Trump Returns to the White House
The President #DonaldTrump has declared that seized Bitcoin will be kept as a national strategic reserve fund instead of being sold on the market. However, before he took office, USMS planned to sell 69,370 BTC (worth $6.6 billion) from the Silk Road case. This raises suspicions about the motives and long-term strategy of the U.S. government regarding Bitcoin.
Hiring Third Parties to Manage Crypto: A Controversial Contract
Aware of its inefficiencies, USMS has sought to hire third parties to manage crypto. However, this process has faced much controversy:
In 2021, the crypto management contract was awarded to BitGo but was canceled for not meeting small business criteria. The contract then shifted to Anchorage Digital but was also canceled for similar reasons.
In 2024, Coinbase won the management contract $BTC and popular assets, while CMDSS was tasked with managing less popular assets. However, Anchorage has sued Coinbase, and CMDSS has been accused of lacking a license from SEC/FINRA.
These controversies are causing the U.S. government's management of Bitcoin to become more chaotic and less transparent.
Could the U.S. lose billions of dollars due to a lack of crypto knowledge?
Experts argue that USMS is approaching crypto as a traditional asset, failing to recognize the differences in management. For example, they previously planned never to hold more than $500 in crypto at once – an unrealistic mindset when Bitcoin's value can reach billions of dollars.
According to statistics from Arkham, the U.S. government currently holds about 198,100 BTC, worth nearly $19 billion, along with many other altcoins such as $ETH , USDT, $WBTC ,... However, with the current management approach, many are concerned that these assets could be lost or exploited illegally.
Many voices are calling for the Government Efficiency Office led by Elon Musk to audit the U.S. management of Bitcoin, similar to how Musk wants to inspect the gold reserve at Fort Knox. If this happens, we might witness many shocking truths about how the U.S. government is handling digital assets. #anhbacong
👉 Can the U.S. truly control its Bitcoin stash? Or is it at risk of losing billions of dollars just due to a lack of understanding of crypto?