Stories complicated the distinction between seized and forfeited belongings have led pro-crypto Senator Cynthia Lummis to panic that the US has dedicated a “total strategic blunder” by promoting off 179,000 bitcoin (BTC).
They believed that the US held virtually 200,000 BTC (price $23 billion) primarily based on knowledge from crypto trackers similar to Arkham and Bitcoin Treasuries, and that it should have bought off most of this stash.
Upon seeing the reviews, a frightened Lummis mentioned, “If true, this is a total strategic blunder and sets the United States back years in the bitcoin race.”
I’m alarmed by reviews that the U.S. has bought off over 80% of its Bitcoin reserves—leaving simply ~29,000 cash.
If true, this can be a whole strategic blunder and units the US again years within the bitcoin race. https://t.co/ciYf1uhy0x
— Senator Cynthia Lummis (@SenLummis) July 16, 2025
It’s price noting that the company can maintain seized belongings, however they weren’t revealed inside yesterday’s FOI.
Nonetheless, the US doesn’t really personal 200,000 BTC, and this whole sum isn’t going to make up the federal government’s Strategic Bitcoin Reserve introduced this yr.
The BTC recorded by Arkham and Bitcoin Treasuries is made up of forfeited and seized BTC.
Forfeited BTC, like that held by the US Marshals Service, is seized first after which authorized for compensation to victims or authorities possession.
Seized BTC, nonetheless, is held by the federal government till it determines whether or not it needs to be forfeited. The 95,000 BTC seized from Bitfinex hackers, as an example, continues to be unclaimed.
Bitfinex awarded $0 in restitution
Disputes over who’s owed bitcoin that the federal government possesses can drag on for years.
BTC seized from the 2016 Bitfinex hack was initially headed again to Bitfinex till some customers claimed they have been victims who have been owed restitution.
The method of figuring out who will obtain the BTC continues to be working by means of the method with an April 4 order throwing the choice over who’s owed restitution to a third-party ancillary continuing.
For the reason that Strategic Bitcoin Reserve consists solely of government-owned forfeited BTC, it gained’t, as issues stand, comprise this Bitfinex seizure.
Regardless, the US authorities hasn’t bought billions of {dollars} price of BTC, and its Strategic Bitcoin Reserve might be considerably much less stocked primarily based on the disclosure.
Customers used the Arkham knowledge to name the protection by journalist L0la L33tz, the journalist behind yesterday’s FOI, a conspiracy.
Nonetheless, BTC treasury agency chief David Bailey additionally famous that Arkham “doesn’t account for a custodian making intraledger transactions.”
