US Files Civil Complaint to Forfeit $2.4M in Seized Bitcoin for Strategic Reserve

US authorities seized 20.2 Bitcoin (BTC), valued at approximately $2.4 million, from a Dallas address allegedly linked to the Chaos hacker group, according to a civil forfeiture complaint filed Thursday in the Northern District of Texas. A Texas US Attorney’s Office statement confirmed the filing.

Dallas FBI Seizure

The Dallas FBI executed the seizure on April 15 this year via warrant, alleging the Bitcoin generated illicit gains from ransomware attacks. Officials are seeking forfeiture under the provisions of the Strategic Bitcoin Reserve mandated by President Trump in March, which would be housed using tokens confiscated through criminal or civil asset forfeiture.

Strategic Bitcoin Reserve

If the forfeiture proceeds, the disputed Bitcoin could formally enter the Strategic Bitcoin Reserve. This initiative aims to establish a government-managed reserve using seized assets. The US government’s actual Bitcoin holdings, however, are subject to debate. While firms like Arkham suggest holdings exceeding 198,000 BTC via multiple addresses, sources like those cited by journalist L0la L33tz in relation to a FOI request indicate the Department of Justice revealed the US Marshals Service held about 28,988 BTC, a figure excluding other agencies and pending forfeiture status.

State-Level Initiatives

Following federal efforts, numerous state legislatures have introduced bills aiming to create strategic Bitcoin reserves. Currently, Arizona, Texas, and New Hampshire have enacted laws, while over 30 proposals related to such reserves have been introduced, though many have failed or been shelved before committee hearings.