Senator Lummis Calls Alleged US Bitcoin Dump a “Strategic Blunder”

Pro-crypto Senator Cynthia Lummis reacts to reports that the United States government has sold more than 80% of its Bitcoin stash, referring to the move as a strategic blunder. Yesterday, the crypto community was stirred by reports claiming that the U.S. government had offloaded a significant portion of its nearly 200,000 BTC stash. Some sources stated that the sale had reduced the government’s Bitcoin holdings to just 28,988 BTC, an 85% drop from the 198,012 BTC it held earlier this year. Senator Lummis Reacts For context, the reports emerged after a FOIA response from the U.S. Marshals Service (USMS) surfaced online, suggesting that the agency held roughly 29,000 BTC. The USMS is responsible for managing and auctioning off seized cryptocurrencies, including Bitcoin, in the United States. As such, the news that it holds only 29K BTC alarmed the crypto industry. Notably, Senator Lummis reacted to the report via a post on X, expressing shock that the government may have sold off 80% of its Bitcoin holdings. She stated that if the reports were accurate, then the government had made a total strategic blunder. In her view, such a move may set the U.S. several years backward in the global Bitcoin race. https://twitter.com/SenLummis/status/1945578868665917535 US Government Current Bitcoin Holdings Meanwhile, the claims that the U.S. government has sold most of its Bitcoin holdings misinterpret the FOIA response. While the response indicated that USMS holds roughly 29,000 BTC, on-chain data from Arkham Intelligence shows the U.S. government still has approximately 200,000 BTC. The government obtained these assets through criminal and civil forfeitures. Tracked public wallets indicate that the government still holds a total of 198,012 Bitcoin, currently worth $23.49 billion. The U.S. plans to retain them for several years, anticipating a future price increase and using the proceeds to help offset national debt.. President Donald Trump outlined this strategy while signing an executive order earlier this year. He ordered the BTC tokens to be held in a strategic reserve. Interestingly, Trump intends to grow the U.S. Bitcoin stash over the years through budget-neutral ways. Per the order, the president directed the Commerce and Treasury departments to propose ways the government can acquire more BTC without incurring any costs to taxpayers. In the meantime, the government’s portfolio is currently worth $24.25 billion. It comprises multiple crypto assets, including 347 million USDT, 59,951 ETH ($202.14 million), 750 wBTC ($88.94 million), and 40,293 BNB ($28.7 million).

Journalist Addresses Misrepresentation of FOIA Response However, Lola L33tz, the independent journalist who filed the FOIA request, addressed the public misinterpretation of the USMS response, particularly the reference to Arkham Intelligence data, which indicates that the U.S. government still holds roughly 200,000 BTC. Lola clarified the distinction between seized and forfeited crypto assets. She explained that seized assets are held by law enforcement agencies, such as the FBI, following court-authorized actions. In contrast, forfeited assets have been legally declared government property, typically through judicial rulings or settlements. Essentially, the remaining Bitcoin is likely still under seizure but not yet forfeited, which explains why it is not in USMS custody or included in the FOIA disclosure. Notably, Lola emphasized that the USMS is the primary custodian of forfeited Bitcoin, not all government-held BTC. “This doesn't mean that the U.S. government has sold any Bitcoin,” Lola added. “It just means that whatever these U.S. Treasury sites estimate is likely wrong, as they don't seem to differentiate between seized and forfeited coins.”