For years, the US government has run a side business selling Bitcoin (BTC) and other cryptocurrencies at auction.
Nonetheless, according to statistics supplied by co-founders Negentropic of on-chain analytics platform Glassnode, the government still retains $4.08 billion in Bitcoin holdings as of February 2022, after dumping a large portion of the Bitcoin it had gotten through seizures.
Surprisingly, the US government owns more than twice as much as both Ukraine and Tesla (NASDAQ: TSLA), with $2.01 billion and $1.86 billion, respectively.
Last year, Tesla bought Bitcoin and listed it on its balance sheets, albeit it stopped accepting Bitcoin as payment a short time afterwards.
The US government ranks third in terms of Bitcoin ownership, after only the Grayscale Bitcoin Trust ($27.93 billion) and MicroStrategy ($5.43 billion).
In 2021, the value of crypto confiscated by the US government topped $1 billion.
The amount of cryptocurrencies seized by the US authorities in 2021 alone exceeded $1 billion, a rise of eightfold over the previous year.
Jarod Koopman, director of the Internal Revenue Service's cybercrime unit, said in December that in the fiscal year 2019, they had about $700,000 worth of crypto seizures. In 2020, it was up to $137 million. And so far in 2021 (as of August), they’re at $1.2 billion.
The US Marshals Service, which is in charge of auctioning off the government's cryptocurrency assets, has seized and auctioned off more than 185,000 Bitcoins as of December, valued an estimated $8.6 billion at the time.
$3.5 Billion Bitfinex hackers caught
Analysts predict the US government's crypto purse will continue to expand as long as cybercrime grows at its current rate.
On February 1, Bitcoin worth more than $3.5 billion from the 2016 Bitfinex theft was on the move, according to reports. On the 31st of January, on-chain watchers began to notice unusual behavior around the wallets that held the cash from the infamous hack.
Many observers thought it odd that the funds were being aggregated without any form of privacy-preserving action, such as mixing with Monero or Tornado Cash.