US Government Holds More Bitcoin Than MicroStrategy, Tesla Combined
The United States government has already surpassed MicroStrategy and Tesla as one of the largest holders of Bitcoin, with over 205,000 BTC in its possession, Dune data at the shows on March 27th. This amount is slightly more than 1% of the current circulating supply and is worth $5,734,743,113 in spot fees.
US government seizes billions in Bitcoin
According to trackers, MicroStrategy holds 132,500 BTC, while Tesla owns 10,725 BTC, less than what the United States government controls.
Previously, authorities held at least 215,000 BTC, but sent 9,860 BTC to Coinbase in early March 2023. Still, that leaves the government with a huge stash of coins that they seized in separate events over the years.
In the first instance, the government seized 69,369 BTC from a person they dubbed “Individual X” linked to the Silk Road marketplace. The address of individual X, known as “1HQ3”, was confirmed to originate from the Silk Road through blockchain analysis.
Reports indicate that federal law enforcement seized the funds on November 3, 2020, after filing for confiscation in the courts. “Individual X” agreed to forfeit all assets as part of a deal with the government.
In the second instance, 94,636 BTC directly connected to the 2016 hack of cryptocurrency exchange Bitfinex were seized by US authorities.
Ilya Lichtenstein and his wife, Heather Morgan, were also arrested in connection with the case. They allegedly conspired to launder 119,754 BTC in over 2,000 transactions over five years.
The United States Department of Justice (DoJ) said this was the “largest cryptocurrency seizure to date,” valued at over $4 billion in spot fees.
O third case involved James Zhong, who pleaded guilty to illegally obtaining over 50,000 Bitcoins from the Silk Road marketplace.
On November 9, 2021, the DoJ searched Zhong’s home in Gainesville, Georgia and seized over 51,326 BTC, valued at over $3.36 billion.
Increasing success in recovery rates
Although Bitcoin is pseudonymous, it can also be abused by malicious actors and used as a tool for money laundering and terrorist financing. ETThe government’s rising Bitcoin holdings reflect the authorities’ success in dealing with bad actors and providing a reprieve for victims.
Related Reading: Bitcoin Hashrate Hits 400 EH/s as Miners Profit from Bull Market
The seizure of thousands of Bitcoins by governments and law enforcement agencies, especially in the United States, points to the work done behind the scenes to protect users and bring offenders to justice.
As authorities record success, regulations are being developed to streamline processes and protect investors from rogue agents, especially as cryptocurrency becomes more popular.
As crypto and Bitcoin are adopted, major banks including JP Morgan and Goldman Sachs have started offer cryptocurrency trading services for its clients.
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