Does the U.S. Government Really Hold 327,000 Bitcoins? Inside the Massive Crypto Seizure Debate

Recent reports have reignited debate over the size of the U.S. government’s Bitcoin trove — with some estimates now placing it at a staggering 327,000 BTC, worth billions of dollars. But are these claims accurate, or just social media hype?

On October 14, 2025, the U.S. Department of Justice (DOJ) announced a record-breaking forfeiture of 127,271 bitcoins linked to a Cambodia-based criminal network led by Chen Zhi, head of the Prince Group. According to the DOJ, this represents the largest cryptocurrency seizure in the Department’s history, marking a major milestone in the U.S. government’s ongoing efforts to combat international cybercrime and financial fraud.

A Landmark Seizure

The forfeited Bitcoin originated from what officials described as a sophisticated transnational scam operation that defrauded thousands of victims across multiple jurisdictions. In a public statement, Attorney General Pamela Bondi and Deputy Attorney General Todd Blanche reaffirmed the government’s stance on digital asset crime, emphasizing that “the United States will use every tool at its disposal to defend victims and recover stolen assets.”

This single seizure alone dramatically increased U.S. federal holdings of Bitcoin — fueling widespread speculation across the crypto community. Influencers and analysts quickly began circulating claims that the government now controls 325,000 to 327,000 BTC in total.

Tracing the Numbers

Before the October forfeiture, Arkham Intelligence — a blockchain analytics firm — estimated that U.S. government-controlled wallets collectively held around 198,000 BTC, based on on-chain forensics and historical seizure data.

If Arkham’s baseline figure is accurate, adding the 127,271 BTC from the Chen Zhi forfeiture would indeed bring total estimated holdings close to 325,000 BTC — lending credibility to the viral claims. However, the exact number remains uncertain due to ongoing liquidation events, auctioned assets, and unannounced transfers by government agencies such as the U.S. Marshals Service, which periodically sells confiscated crypto holdings.

Why It Matters

If the estimates prove correct, the United States would rank among the largest single Bitcoin holders in the world, alongside early adopters and institutional entities like MicroStrategy. Such vast holdings underscore the complex relationship between regulators and the crypto ecosystem — where law enforcement actions not only reshape criminal networks but also indirectly influence the digital asset supply landscape.

As the DOJ continues its crackdown on global crypto crime, one thing is clear: the U.S. isn’t just policing Bitcoin — it’s quietly becoming one of its biggest custodians.