The US government has initiated a civil complaint to seize 20.2 BTC, valued at approximately US$2.4 million (AU$3.69 million), linked to the ransomware group known as Chaos. The complaint was filed in the Northern District of Texas, following the seizure of the Bitcoin by the FBI’s Dallas division.
If the complaint is successful, these seized assets may be integrated into a proposed US Strategic Bitcoin Reserve. This initiative stems from a directive established during Donald Trump’s presidency, which mandates that all confiscated Bitcoin be included in a federal reserve pool. The Texas office of the US Attorney has corroborated this plan through a recent statement.
The Dallas FBI executed the seizure on April 15, as part of an ongoing campaign to dismantle ransomware operations that rely heavily on cryptocurrencies for extortion and money laundering activities. This action is emblematic of increasing efforts to combat such digital crimes, which have proliferated globally, including in Australia. These scams often involve a deceptive practice called “pig butchering,” where perpetrators cultivate long-term relationships with victims before defrauding them of their cryptocurrencies. The Australian Securities and Investments Commission (ASIC) has recently taken action against numerous companies suspected of orchestrating these scams.
### Assessing US Government Bitcoin Holdings
The actual amount of Bitcoin held by the US government has proven to be a topic of contention. Data from sources like Nansen, Arkham, and BitcoinTreasuries.NET estimates US Bitcoin holdings at nearly 198,000 BTC, predominantly acquired through past law enforcement seizures.
However, recent revelations from a Freedom of Information Act (FOIA) request, made by independent journalist L0la L33tz, claim that the US Marshals Service currently possesses only 28,988 BTC. This figure excludes any bitcoins held by other federal agencies such as the DEA and the FBI.
Arkham also weighed in on this matter, indicating that the current data reflects multiple agencies managing and holding Bitcoin independently. Nevertheless, they maintain that their analytics still suggest at least 198,000 BTC is traceable back to government-related addresses, with none of those coins moving for at least the past four months.
L33tz further highlights a discrepancy where many tracking services do not differentiate between coins that have been simply seized and those that have been legally forfeited. This ambiguity raises questions regarding the true ownership of certain coins.
### Conclusion
The ongoing actions by the US government to secure and potentially integrate ransomware-related Bitcoin into its national reserve underscore a significant regulatory focus on cryptocurrency-related crimes. With rising cases of scams like “pig butchering” affecting individuals, there is a growing imperative for authorities to enhance their oversight and enforcement capabilities in this rapidly evolving digital landscape. The uncertainty surrounding the exact amount of Bitcoin possessed by the government only adds to the complexity of the situation, leaving stakeholders questioning the true extent of federal cryptocurrency control.
