U.S. Marshals Reveal True Bitcoin Holdings: 28,988 BTC vs 200K Estimates

The U.S. Marshals Service (USMS), responsible for managing and liquidating seized assets, reported holding 28,988.35643016 BTC as of March 2025, according to a Freedom of Information Act (FOIA) response obtained by journalist L0la L33tz and released on July 16, 2025.

The discrepancy with earlier estimates – which presumed over 200,000 BTC in federal reserves – stems from conflating assets held by multiple agencies and claims about seized versus government-owned coins.

No large-scale auctions have been conducted by the USMS since January 2024, when it sold 69,370 BTC on behalf of the Department of Justice. Blockchain analysis indicates the USMS wallet has remained static since early 2025, dispelling rumors of recent sell-offs.

“I’m alarmed by reports that the U.S. has sold off over 80% of its bitcoin reserves—leaving just ~29,000 coins. If true, this is a total strategic blunder,” Senator Cynthia Lummis (R-WY) wrote on social media.

In 2021, the Infrastructure Act expanded federal seizure authority, leading to an assumed buildup of holdings across agencies. However, many seized assets were later returned to private parties or creditors, leaving the USMS as the primary custodian.

Past auctions by the USMS have been major market events, with sales in 2020 and 2024 drawing significant trading volume. Future disposition of the remaining 28,988 BTC will depend on DOJ directives and market conditions.

The disclosure has prompted renewed debate among crypto policy analysts and lawmakers over federal digital-asset strategy and questions about whether the government should have retained more seized assets rather than auctioning them.