US Seeks Forfeiture of 20.2 BTC From Chaos Ransomware Group to Potentially Boost Strategic Bitcoin Reserve

The US government is seeking the forfeiture of 20.2 Bitcoin seized from the Chaos ransomware group to strengthen its Strategic Bitcoin Reserve, reflecting ongoing efforts to consolidate crypto assets obtained through criminal investigations.

Recent data disputes the total Bitcoin holdings of the US government, highlighting custody differences among agencies.

Arkham analytics confirms no movement of seized Bitcoin in over four months, indicating retention rather than liquidation.

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US pursues forfeiture of 20.2 BTC from Chaos ransomware group to boost Strategic Bitcoin Reserve. Stay informed on government crypto holdings and legal actions.

What is the US Strategic Bitcoin Reserve and how does the 20.2 BTC seizure impact it?

The US Strategic Bitcoin Reserve is a proposed fund consisting of Bitcoin seized through criminal or civil asset forfeiture. The recent forfeiture request for 20.2 BTC from the Chaos ransomware group adds to this reserve, reinforcing government efforts to consolidate seized crypto assets under one strategic umbrella.

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How was the 20.2 BTC linked to the Chaos ransomware group seized?

On April 15, the Dallas FBI executed a seizure of 20.2 Bitcoin from an address allegedly connected to a member of the Chaos ransomware group. This seizure is part of ongoing investigations into ransomware-related unlawful activities, with the Texas US Attorney’s Office confirming the civil complaint for forfeiture.

Source: Texas US Attorney’s Office

Why is there doubt about the total Bitcoin holdings of the US government?

While blockchain analytics firms like Nansen and Arkham estimate the US government holds approximately 198,012 BTC, a freedom of information request revealed that the United States Marshals Service (USMS) only holds about 28,988 BTC. This discrepancy arises because other agencies such as the FBI, DEA, and DOJ also seize and hold Bitcoin, complicating total asset accounting.

What insights do independent sources provide on government-held Bitcoin?

Independent journalist L0la L33tz highlighted that the USMS figure excludes Bitcoin held by other agencies, suggesting multiple custody offices exist. Arkham analytics supports this, noting no movement in government-held Bitcoin wallets for over four months, indicating the assets remain in custody rather than sold.

Source: L0la L33tz

Source: Arkham

How are US states responding to the concept of Bitcoin strategic reserves?

At least 30 US states have introduced legislation to establish Bitcoin strategic reserves, with Arizona, Texas, and New Hampshire passing related laws as of late July. However, many proposals have failed to progress beyond initial committee stages, reflecting varied legislative support across states.

What challenges do state-level Bitcoin reserve laws face?

Several states have seen Bitcoin reserve bills voted down or stalled due to regulatory concerns and legislative priorities. Despite this, the growing interest signals a trend toward formalizing crypto asset management at the state level, aligning with federal initiatives.

Summary Table: US Government Bitcoin Holdings Estimates

Frequently Asked Questions

What agencies hold Bitcoin seized by the US government?

Bitcoin seized by the US government is held by multiple agencies including the US Marshals Service, FBI, DEA, DOJ, and US Attorney’s Offices, each maintaining separate custody.

How does the US government use seized Bitcoin?

The US government consolidates seized Bitcoin into the Strategic Bitcoin Reserve, which is intended to manage and potentially utilize these assets in line with federal policies.

Key Takeaways

• US Strategic Bitcoin Reserve: A government initiative to consolidate seized Bitcoin assets.
• 20.2 BTC Seizure: Dallas FBI’s recent confiscation from the Chaos ransomware group strengthens the reserve.
• Data Discrepancies: Varying estimates of government Bitcoin holdings highlight custody complexities.
• State Legislation: Several US states are pursuing Bitcoin reserve laws, with mixed legislative success.
• Retention Over Sale: Analytics show government-held Bitcoin remains unmoved, indicating long-term holding strategies.

Conclusion

The US government’s pursuit of Bitcoin forfeiture from ransomware groups like Chaos underscores a strategic effort to build a comprehensive Strategic Bitcoin Reserve. Despite discrepancies in reported holdings, multiple agencies maintain custody of seized assets, reflecting a complex but coordinated approach to managing crypto assets. As state legislatures explore similar initiatives, the consolidation and regulation of government-held Bitcoin remain pivotal topics in the evolving crypto landscape.