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According to a<a href="https://www.wsj.com/finance/currencies/federal-government-bitcoin-5-billion-78ce0938" rel="noopener noreferrer nofollow"> recent report</a> by The Wall Street Journal, the United States federal government has emerged as a major player in cryptocurrency, specifically <a href="https://thecoinrise.com/tag/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin </a>(BTC). As per the reports, the government now holds an impressive stash of over 200,000 BTC, commanding a value exceeding $5 billion.
This considerable accumulation of Bitcoin is not the outcome of speculative investments or market maneuvers but rather a strategic response to the escalating challenges posed by cybercrime and illicit online activities. Also, the government’s proactive approach has manifested itself in robust efforts to combat and counteract these digital threats, leveraging the unique characteristics of cryptocurrencies.
<h2 id="b-u-s-authorities-buckle-up-on-cybersecurity-b">U.S. Authorities Buckle up on Cybersecurity</h2>
Recall that, the shutdown of Silk Road, an online drug marketplace in 2013, enabled the <a href="https://thecoinrise.com/silk-road-btc-heist-perpetrator-pleads-guilty-and-gets-convicted/" rel="noopener noreferrer nofollow">government to seize a significant amount of BTC.</a> At that time, the stolen digital currency was around $3.36 billion. Notably, that was the largest crypto seizure that happened in the U.S. at that time. Moreover, Ross Ulbricht, <a href="https://thecoinrise.com/silk-road-creator-apologetic-on-facing-tenth-year-of-jail-time/" rel="noopener noreferrer nofollow">the creator of Silk Road has started his tenth-year jail term</a> and also apologized to the public for the harm he did.
Likewise, the <a href="https://thecoinrise.com/us-court-strikes-out-lawsuit-against-tether-and-bitfinex/" rel="noopener noreferrer nofollow">U.S. government’s intervention in the Bitfinex cyber attack</a>, which took a long period of time to resolve, resulted in the authorities securing an impressive amount of Bitcoin. Also,&nbsp; the couple (Ilya Lichtenstein and Heather Morgan) who were accused of laundering billions of dollars in Bitcoin in connection with the 2016 Bitfinex case, entered an agreement plea with the US authorities.&nbsp;
The<a href="https://thecoinrise.com/couple-responsible-for-bitfinex-attack-reach-a-plea-agreement/" rel="noopener noreferrer nofollow"> authorities apprehended each of them and seized the BTC</a>, which was valued at approximately $54 million at the time of the breach.&nbsp;
<h2 id="b-us-government-becomes-the-major-btc-holder-b">US Government Becomes the Major BTC Holder</h2>
While governments worldwide have grappled with the regulatory aspects of cryptocurrencies, the US government’s move to actively hold a significant amount of BTC is a bold and unprecedented step.
However, the valuation of the government’s Bitcoin holdings reflects not only the rising prominence of cryptocurrencies but also the evolving strategies of governments in adapting to the challenges presented by the digital era. Also, the US government’s substantial BTC holdings serve as both a financial asset and a strategic tool in the multifaceted battle against cybercrime.
<h2 id="b-not-in-a-hurry-to-sell-b">Not in a Hurry to Sell</h2>
Notably, the report also mentioned that the government is not ready to liquidate its BTC assets, as it allows the government to benefit from Bitcoin price appreciation. Meanwhile, the government BTC stash is secured offline in an encrypted storage device known as a hardware wallet and controlled by agencies like the Department of Justice and the Internal Revenue Service.
The post <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com/us-government-holds-more-than-5b-in-bitcoin-btc/">US Government Holds More Than $5B in Bitcoin (BTC)</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

US Government Holds More Than $5B in Bitcoin (BTC)

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