A Freedom of Information Act response released on 16 July shows the U.S. Marshals Service holds 28,988 Bitcoin, valued at about US$3.4 billion. The figure is a fraction of the roughly 200,000 BTC previously believed to sit on federal balance sheets and is the first official confirmation of the agency’s crypto stockpile since large seizures began more than a decade ago. The disclosure covers bitcoin forfeited through criminal and civil cases overseen by the Marshals Service, which is responsible for safeguarding and auctioning seized assets. Blockchain-analytics firms such as Arkham Intelligence have identified nearly 198,000 BTC in wallets linked to federal law-enforcement agencies, suggesting other units—including the FBI and the Internal Revenue Service—may still control substantial holdings. Those addresses have shown no large outflows in recent months, according to on-chain data reviewed by analysts. The unexpectedly low USMS figure sparked political scrutiny. Senator Cynthia Lummis, a vocal crypto advocate, said any sell-off that reduced government reserves by more than 80 percent would represent a “strategic blunder.” Market participants also noted that, at 29,000 coins, the United States would fall behind China, the U.K. and Ukraine in sovereign bitcoin holdings, reversing its long-held position as the largest state holder of the cryptocurrency. Officials have not commented on whether additional bitcoin remains under the control of other federal agencies or whether recent sales took place. The Treasury Department and the Justice Department did not immediately respond to requests for clarification.