In a recent report, Arkham Intelligence disclosed that cybercriminals allegedly stole $20 million in cryptocurrency from U.S. government wallets, including holdings in USD Coin, Tether, aUSDC, and Ethereum. The attackers are reportedly laundering the funds through addresses associated with known money laundering services.
The U.S. government, a major player in the cryptocurrency space, is estimated to hold over 1% of the total bitcoin supply due to substantial asset seizures. These holdings largely stem from law enforcement actions, where crypto assets were confiscated from criminal networks. Despite the sizable collection, the government typically refrains from publicizing the extent of its crypto assets. However, blockchain analytics firms closely monitor transactions from wallets believed to be linked to the government, tracking any movement of these assets.
One of the most notable seizures occurred in 2013 during the crackdown on Silk Road, the infamous dark web marketplace. The authorities dismantled the operation and confiscated nearly 174,000 bitcoin, boosting government-held bitcoin assets to over $1 billion.
Despite its holdings, the U.S. government regularly auctions off bitcoin seized in criminal investigations, with the U.S. Marshals Service managing these sales. However, during the Bitcoin 2024 conference in Nashville, former President Donald Trump vowed to halt the sale of government-held bitcoin. He announced, “If I am elected, it will be the policy of my administration to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future.”
But Trump’s promise hit a significant roadblock. Earlier this month, the U.S. Supreme Court declined to hear a case regarding the ownership of $4.3 billion in bitcoin related to the Silk Road seizure. This decision could open the door for the current administration to proceed with selling off the assets.
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