The U.S. tax agency is being criticized for its handling of Bitcoin.
Poorly seized cryptos, but well kept? Since President Donald Trump announced the creation of a strategic reserve of bitcoins (and other cryptocurrencies), digital assets seized by U.S. authorities have become a national issue. But according to a new report from the U.S. Treasury, the Criminal Investigation Division of the Internal Revenue Service – the U.S. tax agency – allegedly did not adhere to established protocols for seizing and managing cryptos.
The IRS allegedly mishandled and managed Bitcoin between 2023 and 2025.
On July 1st, the Treasury Inspector General for Tax Administration (TIGTA) published a report on the Criminal Investigation Division of the IRS (IRS-CI).
According to this document, IRS-CI did not follow all guidelines between December 2023 and January 2025 for seizure memorandums concerning confiscated cryptos, particularly regarding addresses, dates, and amounts.
TIGTA made several recommendations to improve the management of seized cryptos by IRS-CI:
• Ensure that IRS-CI staff are familiar with the requirements of seizure memorandums;
• Establish an inventory system to manage seized cryptocurrencies, in order to accurately track the amount of cryptos and ensure consistent processing;
• Update internal guidelines to include deadlines for preparing seizure memorandums and updating records in the inventory tracking system.
The U.S. government would hold about 200,000 BTC, worth over 20 billion dollars.
The seizure and holding of cryptocurrencies by U.S. authorities have gained particular importance since the Trump administration decided to create a national reserve of bitcoins and cryptos.
According to estimates, the U.S. government currently holds 198,012 BTC, worth over 20 billion dollars at current prices. These cryptos primarily come from seizures in criminal cases, such as the Bitfinex hack in 2016 or the dismantling of the Silk Road black market.
If the IRS may have mishandled and managed the cryptos poorly, at least they have kept them well, as they will now serve the strategic Bitcoin reserve of Donald Trump. And even if this reserve is currently composed solely of cryptos seized by federal authorities, it is still the largest in the world, ahead of those of China, the United Kingdom, and Ukraine.
