US strategic Bitcoin reserve set for $2.4M boost as FBI clamps down on ransomware crypto

The US government is moving to claim 20.2 Bitcoin (BTC), worth approximately $2.4 million, seized from the Chaos ransomware group—a potential addition to the US Strategic Bitcoin Reserve.

The Dallas FBI confiscated the funds on April 15, 2024, as part of an investigation into cybercriminal activities. A civil forfeiture complaint filed in the Northern District of Texas alleges that the Bitcoin was obtained through illegal ransomware operations.

If successful, the seizure would contribute to the US Strategic Bitcoin Reserve, a proposed federal holding of crypto assets obtained through civil and criminal forfeitures.

President Donald Trump mandated the creation of this reserve in a March 6 executive order, positioning it as a new frontier in national asset management.

Discrepancies emerge over US government’s actual Bitcoin holdings

While blockchain analytics firms estimate the US holds around 198,012 BTC across various agencies, a recent Freedom of Information Act (FOIA) request has cast doubt on those figures.

An independent journalist, posting under the pseudonym L0la L33tz, revealed that the US Marshals Service (USMS) currently holds just 28,988 BTC—far less than public estimates.

“The FOIA response doesn’t account for Bitcoin held by other agencies like the FBI, DEA, or US Attorney’s Offices,” L0la L33tz noted in a July 16 post on X. “There may be other custody offices beyond the USMS.”

Blockchain intelligence firm Arkham disputed the claim, insisting that the US Strategic Bitcoin Reserve includes at least 198,000 BTC spread across multiple government-controlled wallets.

“Our data shows no large-scale sell-offs by US agencies in the past four months,”

Arkham stated on July 23. However, L0la L33tz countered that many tracked wallets contain coins not yet legally forfeited, meaning the government cannot freely liquidate them.

States push for their own Bitcoin reserves amid federal uncertainty

As the federal government expands its US Strategic Bitcoin Reserve, at least 30 states have introduced legislation to establish similar holdings. So far, only Arizona, Texas, and New Hampshire have passed laws enabling state-level Bitcoin reserves, while others have stalled in early legislative phases.

The push comes as law enforcement agencies increasingly seize cryptocurrency from cybercriminals. Earlier this year, the Secret Service conducted its largest-ever crypto seizure, with Coinbase playing a key role in tracking the assets.

What’s the use of the US Strategic Bitcoin Reserve?

The forfeiture case in Texas could set a precedent for how the US handles seized crypto in the future. With conflicting reports on the government’s actual holdings, transparency remains a challenge. Meanwhile, the US Strategic Bitcoin Reserve continues to grow—one seizure at a time.