Governments own $34 billion worth of Bitcoin: details and analysis
Date: 2024-07-18 Author: Henry Casey Categories: IN WORLD
The governments of nine countries around the world have accumulated about $34 billion worth of bitcoins on their balance sheets, which is a significant part of the total supply of the first cryptocurrency. Among the largest holders are the USA, China, Great Britain and other countries. These assets were mainly confiscated during various criminal investigations.
USA
The United States is the largest holder of Bitcoin among governments, with a stock of 213,246 BTC, which is valued at $13.9 billion at current exchange rates. A significant portion of these assets were seized as a result of the Silk Road darknet platform case, as well as other criminal schemes related to with cryptocurrencies.
Silk Road and other seizures
Silk Road founder Ross Ulbricht was arrested in 2013 and sentenced to two life sentences in 2015. As part of the election campaign, Donald Trump promised to release Ulbricht if he won. American authorities also seized 95,000 BTC from Ilya Lichtenstein, who was involved in the hacking of the Bitfinex crypto exchange in January 2022.
China
China is the second largest government holder of Bitcoin with a reserve of 190,000 BTC. All of these bitcoins were confiscated from the organizers of the Plus Token scam, which launched in 2018. The project targeted users from China and South Korea and stole more than $4 billion in assets from clients.
Great Britain
The UK government holds 61,000 BTC in its accounts, also confiscated during various investigations. In 2018, local law enforcement seized devices containing bitcoins obtained as a result of an investment scam that caused losses of $5.6 billion. Some defendants in the case were sentenced to prison terms.
Ukraine: Large donations and confiscations
Ukraine has $3 billion worth of bitcoins, although data on bitcoin volumes has not been updated since September 2022. Ukraine received significant donations of crypto assets in response to the Russian invasion. In December 2023, NABU seized $1.5 million in crypto assets, including bitcoins, from the wallet of the former head of the State Special Communications Service Yuriy Shchigol.
El Salvador: Bitcoin as a legal means of payment
El Salvador, which recognized Bitcoin as legal tender in 2021, owns 5,800 BTC, valued at $378 million. The country has been consistently introducing the first cryptocurrency at various levels, including passing a law granting citizenship by investing in Bitcoin and issuing “volcanic” Bitcoin bonds.
The remaining four countries on the list own a total of 1,017 BTC:
- Butane - 621 BTC
- Venezuela – 240 BTC
- Finland – 90 BTC
- Georgia - 66 BTC
Thus, these countries have $66.5 million worth of bitcoins at their disposal.
Germany: Bitcoin Sale
Germany previously owned almost 50,000 BTC, obtained as a result of confiscation from the creators of the pirated online resource Movie2k. In July 2024, German authorities completed the sale of these bitcoins. At the end of June 2024, the government's crypto wallet began sending large quantities of the first cryptocurrency to various exchanges, which caused a market crash.
Governments around the world continue to accumulate significant reserves of Bitcoin, which have mostly been confiscated during various criminal investigations. These assets represent an important element of government cryptocurrency policy and play a significant role in the regulation and control of cryptocurrency markets.
