U.S. Marshals Service Can't Confirm How Much Bitcoin It Holds, May Impact U.S. Crypto Reserve Plans

The U.S. Marshals Service (USMS) is unable to confirm the amount of bitcoin it currently holds, making it difficult to give even a rough estimate, according to people familiar with the matter. This management flaw could affect the White House crypto chief David Sacks' plan for the US government to create a crypto reserve, which could change the way the government handles seized crypto assets, and could even involve buying cryptocurrencies. Currently, the USMS still relies on Excel records and manual operations, limiting its management efficiency, and outside experts have warned that the agency could lose billions of dollars at any time due to operational errors. USMS began seeking private sector partnerships as early as 2018, but the bidding process dragged on for years, and after awarding contracts related to BitGo and Anchorage Digital in 2021, both were voided because the size of the businesses didn't meet the ‘small business’ criteria. in 2024, USMS refocused its strategy, awarding two new contracts. awarding two separate new contracts to manage different classes of crypto assets.