The US government has now overtaken MicroStrategy and Tesla as one of the largest holders of Bitcoin, with over 205,000 BTC in possession, Dune data March 27 offers. This figure is just over 1% of the current circulating supply and is worth $5,734,743,113 at spot prices.
The US government confiscates bitcoins worth billions of billions
According to the trackers, MicroStrategy He carries 132,500 BTC while Tesla owns 10,725 BTC, which is less than what the US government controls.
Earlier, the authorities held at least 215,000 BTC but sent 9,860 BTC to Coinbase in early March 2023. However, this leaves the government with a massive stash of coins which it has confiscated in separate events over the years.
In the first place, the government took over 69,369 BTC from a person they call “Individual X” who is connected to the Silk Road Market. The address of Individual X, known as “1HQ3”, is confirmed to have originated from the Silk Road through blockchain analysis.
Reports indicate that federal law enforcement agencies seized the funds on November 3, 2020, after requesting forfeiture before the courts. Individual X agreed to forfeit all assets as part of a deal with the government.
In the second case, 94,636 BTC directly linked Bitfinex was seized by the US authorities for the 2016 hack of the cryptocurrency exchange.
Elijah Lichtenstein and his wife, Heather Morgan, were also arrested in connection with the case. They allegedly conspired to launder 119,754 BTC in more than 2,000 transactions within five years.
The US Department of Justice (DoJ) said this was the “largest cryptocurrency seizure to date,” valued at more than $4 billion at spot rates.
the Third case James Chung, who pleaded guilty to illegally obtaining more than 50,000 bitcoins from the Silk Road marketplace, was involved.
On November 9, 2021, the Department of Justice searched Zhong’s home in Gainesville, Georgia, and seized more than 51,326 BTC, worth over $3.36 billion.
Increase recovery success rates
While bitcoin is a pseudonym, it can also be misused by malicious agents and used as a tool for money laundering and terrorist financing. whatThe government’s increasing holdings of bitcoin reflect the authorities’ success in dealing with bad actors and providing reprieve for victims.
Related Reading: Bitcoin Hashrate Reaches 400 EH/s As Miners Earn From Bull Market
The seizure of thousands of bitcoins by governments and law enforcement agencies, especially in the United States, indicates the work being done behind the scenes to protect users and bring violators to justice.
While authorities register success, regulations are being developed to streamline processes and protect investors from rogue clients, especially as crypto becomes more widespread.
With the adoption of cryptocurrency and bitcoin, major banks, including JP Morgan and Goldman Sachs, have taken off an offer Cryptocurrency trading services for its clients.
Featured image from Canva, chart from TradingView