President Donald Trump has signed an executive order to establish a U.S. Strategic Bitcoin Reserve, using forfeited digital assets from romance scammers, civil offenders, and convicted criminals, including Hushpuppi and Mr. Woodberry.
Bitcoin Reserve Funded by Seized Assets
Approximately 200,000 Bitcoin—valued at around $19 billion—from civil and criminal forfeitures will now be permanently transferred into the reserve. The move aligns with Trump’s goal of making America the world’s crypto capital.
The president has directed the Treasury and Commerce Departments to develop budget-neutral strategies to acquire more Bitcoin without imposing financial burdens on American taxpayers, according to White House AI and Crypto Czar David Sacks.
“The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings,” Sacks stated on X.
Crypto Seizures and Notable Cases
The U.S. government has previously seized significant amounts of Bitcoin and other cryptocurrencies in criminal cases:
April 2022
The FBI confiscated 151.8 Bitcoin from Nigerian internet fraudster Olalekan Jacob Ponle (Mr. Woodberry), who ran a business email scam defrauding U.S. companies of tens of millions of dollars.
2022
Nigerian fraudster Ramon Olorunwa Abbas (Hushpuppi) forfeited millions in digital assets after his arrest in Dubai and extradition to the U.S. He is currently serving an 11-year sentence at Fort Dix Correctional Facility, New Jersey.
2024
The U.S. Secret Service seized $1.5 million from the Binance wallet of Nigerian fraudster Avwerosuo Omokri, with holdings in Bitcoin, Ethereum, AVAX, USDT, and PEPE.
U.S. Bitcoin Reserve: A New ‘Fort Knox’
The Strategic Bitcoin Reserve ensures that funds forfeited in legal and criminal proceedings contribute to the government’s crypto holdings. Sacks likened the initiative to Fort Knox, the heavily guarded military base that secures America’s gold reserves.
With this move, the U.S. is solidifying its position as a dominant force in the global crypto economy.
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