[Editor’s Note: Given that President Trump announced that seized Bitcoin would become part of a Strategic Bitcoin Reserve earlier this year, it is also possible that the Bitcoin is simply no longer under US Marshals custody. However, who controls the keys for the Bitcoin tracked onchain remains unclear.]
“I think it is conclusive they’ve been selling without creating onchain footprint.”
Bitcoin analyst Sani, who tracks addresses suspected to be linked to US government wallets, confirmed no recent transactions from those addresses.
“If that’s truly what’s happening, then all the on-chain tracking we’ve been doing, mine included, might not matter anymore.”
“If true, this is a total strategic blunder and sets the United States back years in the bitcoin race.”
According to her, many seized assets, such as those tied to ongoing investigations or hacks like Bitfinex, are not yet government property and may reside with other federal agencies like the DEA or FBI.
She emphasized that platforms like Arkham may misrepresent totals by lumping together seized and forfeited coins. L33tz pointed out:
She noted that in many cases, seized coins remain victims’ property and will never become US government assets.
Monahan highlighted ongoing legal processes, ranging from civil forfeiture to IEEPA, determining the fate of seized property.
She cited several examples, including a case where the FBI currently holds $40 million in crypto linked to an August 2024 theft, but these coins are expected to be returned to the rightful owner under the terms of a plea agreement.
Considering this, Monhan stated:
“Most of the time the coins seized by USG do not become property of the USG. They are returned to the victim that was hacked or defrauded.”
