According to the BitcoinTreasuries website, which tracks the bitcoin holdings of various entities, the United States government currently holds the largest amount of bitcoin among governments. It holds 213,246 bitcoins, valued at 13.5 billion US dollars. China and the United Kingdom are ranked second and third, holding 190,000 and 61,000 bitcoins respectively, with a current value of 12.1 billion and 3.8 billion US dollars. These bitcoins were all confiscated in the fight against crime.
The United States government, which holds the largest amount of bitcoin, has never purchased bitcoin. Its holdings were all confiscated from criminals. From November 2020 to November 2022, the US government confiscated over 200,000 bitcoins in three different law enforcement actions against cybercriminals and the dark web market. Currently, these bitcoins are mainly stored in encrypted, password-protected offline cold wallets controlled by the US Department of Justice, the Internal Revenue Service, or other institutions.
The main sources of confiscated bitcoins by the US government are as follows: in November 2020, 69,369 bitcoins were confiscated from the Silk Road, the largest darknet marketplace; in January 2022, 94,643 bitcoins were confiscated from the Bitfinex hacker; and in March 2022, 51,326 bitcoins were confiscated from the Silk Road hacker James Zhong. The US government still holds 41,500 bitcoins from this confiscation.
The way the US government handles these bitcoins has always been a topic of market concern, as any sale could potentially affect the price. In February 2021, the US government sold 9,861 bitcoins previously owned by the Silk Road on Coinbase. In February 2022, the US government transferred the 15,085 bitcoins confiscated in the Bitfinex hacker case, possibly in preparation for an auction.
The Chinese government, which holds the second-largest amount of bitcoin, confiscated 190,000 bitcoins in the PlusToken Ponzi scheme case in 2020. The confiscated funds seized by the Chinese public security authorities included 194,775 bitcoins.
The UK government, which holds the third-largest amount of bitcoin, confiscated 61,000 bitcoins in a bitcoin money laundering case. Jian Wen, a former Chinese restaurant employee in the UK, was accused by the UK authorities of assisting Chinese fugitive Zhimin Qian in money laundering using false identities. As a result, 61,000 bitcoins were seized. From 2014 to 2017, Zhimin Qian orchestrated an investment fraud scheme worth 6.3 billion US dollars, defrauding 130,000 Chinese investors.
Although the current UK government has confiscated these 61,000 bitcoins, Chinese scholars have recently pointed out that the 130,000 Chinese victims have the right to compensation. They suggest that this case needs to be resolved through diplomatic coordination, judicial and law enforcement cooperation between China and the UK, to achieve a win-win situation within the framework of international law.
It is worth noting that MicroStrategy, a US-listed company, holds more bitcoin than any country. It currently holds 214,278 bitcoins, valued at 13.55 billion US dollars. In comparison, Tesla, the second-largest holder of bitcoin among listed companies, only holds 17,631 bitcoins, valued at 1.11 billion US dollars.