Reports confusing the differences between seized and forfeited assets led Crypto Sen. Cynthia Ramis to panic that the US had committed a “complete strategic failure” by selling 179,000 Bitcoin (BTC).
A large number of Bitcoiner and crypto news outlets reported that the US sold 85% of its BTC holdings ($21 billion) after revealing that US Marshall Services holds only 28,988 in the confiscated BTC.
They believed that the US had around 200,000 BTC (Equivalent to $23 billion) It is based on data from crypto trackers such as Arkham and Bitcoin Treasuries, and must have sold most of this stash.
Looking at the report, Ramis, worried, said, “If true, this is a complete strategic blunder, going backwards the US with the Bitcoin race.”
Read more: FOIA reveals our ex sitting at least $1.6 billion in BTC
However, the US does not actually own 200,000 BTC. This overall sum does not supplement the government's strategic Bitcoin reserves announced this year.
The BTC recorded by the Arkham and Bitcoin Treasury Department consists of forfeitured and seized BTC.
The confiscated BTC is first seized, as held by the former US s-services, and is then approved for compensation for the victim or government ownership.
However, the seized BTC will be held by the government until it determines whether it should be confiscated. For example, 95,000 BTC was seized from Bitfinex hackers. Not charged yet.
Bitfinex awarded $0 compensation
The dispute over who owes Bitcoin, owned by the government, has been dragging for years.
Seized from Bitfinex Hack in 2016, BTC returned to Bitfinex until it originally returned to Bitfinex and claimed that some users were victims owed compensation.
The process of determining who receives the BTC is working through the process, with the order of April 4, throwing decisions about who is owing to third-party supplementary procedures.
The strategic Bitcoin Reserve consists solely of government-owned forfeitured BTC, so things stand out, and this bitfinex fit doesn't include.
Regardless, The US government doesn't sell billions of dollars worth of BTCand its strategic Bitcoin reserves will be significantly less stocked based on disclosure.
Users used Arkham data to summon reports of journalist L0LA L33TZ, the journalist behind yesterday's FOI.
However, BTC Treasury leader David Bailey also said Arkham “doesn't explain that custodians are making representative transactions.”
