In Texas, federal law enforcement is requesting a court order to seize over $2.4 million worth of Bitcoin
Reportedly, the sum totals 20.2 BTC, and authorities suspect these assets originated from a digital wallet connected to the infamous Chaos ransomware group.
According to a statement released on July 28, the government contends that these cryptocurrencies were acquired through illicit activities. They are now seeking court approval to transfer ownership of the Bitcoin to the federal government. This action may contribute to the expansion of the U.S. Strategic Bitcoin Reserve.
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There are conflicting data points regarding the US government’s total Bitcoin holdings. Blockchain analytic firms, including Arkham, Nansen, and BitcoinTreasuries.NET, estimate the collective amount to be more than 198,000 BTC.
However, an independent journalist reported via X on July 16, citing a freedom of information request, that the United States Marshals Service (USMS) possesses around 28,988 BTC.
This figure excludes cryptocurrency managed by other federal bodies like the FBI and DEA. The journalist suggested that the discrepancy arises from individual departments controlling their own wallets, thus spreading the total assets across various agencies.
Arkham pointed out on July 23 that numerous U.S. government entities, encompassing the Department of Justice and the FBI, maintain seized Bitcoin across a network of wallets. They also noted the absence of any movement within these wallets for at least the past four months.
The journalist cautioned, however, that certain platforms might not accurately distinguish between legally forfeited and merely frozen cryptocurrency. Bitcoin can remain stored in government-controlled digital wallets for a considerable duration pending court authorization for usage or liquidation.
The U.S. Attorney’s Office in Seattle initiated proceedings to seize $7.1 million in cryptocurrency connected to a fraudulent oil investment scheme on July 22. What did Acting U.S. Attorney Teal Luthy Miller state? Read the full story.
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