The limitation on United States users to recover more than $1.7 billion worth of distributed crypto tokens derives from blocking systems implemented by developers throughout geographic territories.
US cryptocurrency account holders possess approximately 22% to 24% of global addresses but strong policy restrictions prevent them from claiming distributed funds thus causing significant financial losses.
Billions in airdrop value blocked from U.S. users
A report by Dragonfly reveals that up to 5.2 million U.S. crypto users have been excluded from airdrop claims because of geoblocking measures designed to minimize regulatory risks. The analysis examined 11 restricted airdrops with a total value of $7.16 billion, distributed among 1.9 million wallet addresses. Based on this data, the median payout per eligible address would have been approximately $4,600.
The value of airdropped tokens lost by U.S. crypto users between 2020 and 2024 totalled between $1.84 billion and $2.64 billion. The blocked airdrops listed on CoinGecko showcase $5.02 billion as the potential value in missed tokens from 21 restricted distributions. Users who accessed their claims through virtual private networks managed to bypass restrictions but it is probable that numerous legitimate claimants were unable to retrieve what belonged to them.
Regulatory barriers impact individuals and the economy
Geoblocking practices have generated notable financial effects for both crypto users at an individual level and financial systems at large. The risk of regulatory oversight makes some crypto projects choose to cut off U.S. participants which prevents them from benefiting from potential earnings. Personal wealth together with the country-wide expansion of the crypto field have been negatively impacted by these limitations.
The report highlights that the financial consequences extend beyond lost airdrops. The inability to claim these tokens has prevented potential capital gains, reducing market activity and participation in the digital asset space.
Lost tax revenue reaches over $1 Billion
The missed airdrop claims have also led to a substantial loss in federal tax revenue. Estimates suggest that between $418 million and $1.1 billion in tax revenue has been lost due to these restrictions. This figure does not account for additional taxes that could have been generated from the sale or appreciation of these tokens.
These findings demonstrate how tight regulatory controls negatively affect financial activity of U.S. cryptocurrency users. The regulations aimed at regulatory compliance and geoblocking may determine how cryptocurrency users in the country engage with digital assets moving into the future.