Recent claims circulating across crypto-focused social media channels suggest that the U.S. government now holds as much as 327,000 bitcoins following a major forfeiture linked to a Cambodian-based fraud network. However, available data and official statements indicate a slightly lower figure — around 325,000 BTC, according to blockchain analytics firm Arkham Intelligence.
DOJ forfeiture sparks confusion over “ownership” vs. “holding”
On October 14, 2025, the U.S. Department of Justice announced the forfeiture of 127,271 bitcoins connected to an international scam operation based in Cambodia. The news quickly fueled speculation among crypto commentators and influencers, with several high-profile accounts — including Exodus Wallet CEO JP Richardson — asserting that the forfeiture brought total U.S. Bitcoin holdings to 327,000 BTC.
However, this interpretation conflates two key legal terms: forfeiture and seizure. The DOJ’s official press release makes no mention of “seizure,” instead using the term “forfeiture” seven times. The distinction is crucial — forfeiture implies that ownership of the assets has been legally transferred to the government, while seizure indicates only temporary control pending judicial action.
As the FBI’s public guidance explains,
“Forfeiture removes the profit motive from the crime and returns property obtained under fraudulent pretenses by the criminal to the victims.”
In the DOJ’s statement, Attorney General Pamela Bondi and Deputy Attorney General Todd Blanche emphasized that the action was part of a broader effort to combat human trafficking and financial fraud. Their remarks suggested that at least some of the forfeited assets could be returned to victims — similar to the DOJ’s 2024 recommendation to return 94,643 BTC from the Bitfinex hack to the exchange.
Could the forfeited bitcoins be returned?
Despite the DOJ’s statement, no precedent exists yet for large-scale restitution of forfeited Bitcoin. The matter is further complicated by former President Donald Trump’s executive order of March 6, 2025, which created the Strategic Bitcoin Reserve (SBR) and explicitly prohibited the government from selling its Bitcoin holdings.
The accompanying fact sheet to the executive order states:
“Taking affirmative steps to centralize ownership, control, and management of these assets within the Federal government will ensure proper oversight, accurate tracking, and a cohesive approach to managing the government’s cryptocurrency holdings.”
This wording raises questions about whether assets designated for restitution — like the 127,000 BTC forfeited this month — could legally remain within the SBR. The DOJ retains the discretion to recommend returning funds to victims, but it is not legally obligated to do so.
Estimating U.S. Bitcoin holdings
Because the U.S. government does not publish a real-time ledger of its cryptocurrency holdings, analysts rely on on-chain tracking to estimate balances. According to Arkham Intelligence data as of October 16, 2025, U.S. government-controlled wallets collectively hold approximately 325,447 BTC.
That figure aligns closely with the 325,000 BTC cited by multiple analysts and diverges slightly from the 327,000 BTC estimate circulating on social media. The discrepancy likely arises from the addition of the 127,000 BTC forfeiture to a round estimate of 200,000 BTC — a figure referenced earlier this year by David Sacks, the U.S. “Crypto and AI Czar,” following the establishment of the Strategic Bitcoin Reserve.
The uncertain future of U.S.-held Bitcoin
It remains unclear whether the U.S. has ever conducted a full audit of its Bitcoin holdings. Trump’s executive order called for such an audit, but no public documentation has surfaced confirming its completion.
Of the estimated 325,000 BTC, around 94,000 BTC are expected to be returned to Bitfinex, while approximately 29,000 BTC remain in custody of the U.S. Marshals Service, which historically handles the liquidation or management of forfeited assets.
With the legal framework around crypto asset forfeiture and restitution still developing — and the SBR prohibiting outright sales — the U.S. government’s role as one of the world’s largest Bitcoin holders is likely to remain a gray area for the foreseeable future.
