According to the Wall Street Journal, one of the world's biggest Bitcoin whales is the US government.
According to WSJ, the US government holds approximately 200,000 BTC worth more than $5 billion.
When we look at the source of the BTCs, it appears that the Bitcoins in question were seized as a result of the US government's efforts to prevent cybercrimes and illegal online activities.
It was stated that at this point, BTCs are mostly held in hardware wallets controlled by the US Department of Treasury, IRS and other institutions.
The WSJ report stated that the total amount of BTC held by the US government is probably larger than publicly disclosed.
How Is the US Government Selling Bitcoins?
The US government's approach towards seized Bitcoins differs from its approach towards other seized assets.
Accordingly, when a government agency in the USA seizes a cryptocurrency, this asset does not immediately become the property of the government.
Only after the court issues a final seizure order does the government take ownership of the seized cryptocurrency and turn it over to the U.S. Marshals Service, the agency responsible for selling the seized assets.
At this point, the legal process required for the US government to convert the seized Bitcoins into cash may take years.
*This is not investment advice.
