Senator Cynthia Lummis questions US decision to sell seized 70,000 Silk Road BTC

Senator Cynthia Lummis (R-WY) has expressed concerns over the US government’s plan to sell 69,370 BTC seized in the Silk Road case. Now, she is questioning federal authorities. Lummis urges them to reconsider liquidating BTC and to reserve the tokens for future plans.

In a letter addressed to US Marshals Service Director, Ronald L. Davis, Lummis questioned the timing, decision-making process, and transparency surrounding the sale. 

According to the Wyoming Senator, the BTC holdings are estimated to be worth over $6 billion at current market prices. 

The Bitcoins are linked to the Silk Road darknet marketplace seized in 2020 from an anonymous individual. Before that, the platform was dismantled in 2013 for aiding and abetting illegal drug transactions. 

At the onset of 2025, the US Department of Justice (DOJ) announced plans to sell the holdings following a federal court ruling.

Lummis: US Marshals Service’s BTC record is underwhelming 

Senator Lummis also pointed out the concerning history of Bitcoin sales by the US Marshals Service, which manages the liquidation of seized digital assets. 

According to her notice, the agency sold approximately 195,092 BTC between 2014 and 2023 for a total of $366.5 million. This amount was reportedly lower than the current market value of those holdings, which would now be worth $18.9 billion. 

“This represents a staggering 98% loss in unrealized value for American taxpayers,” Lummis wrote. She stressed the need for a more strategic approach to managing digital assets. 

The DOJ has cited Bitcoin’s price volatility as a key reason why sales should be made swiftly. The government arm noted in a recent court filing that the value of the BTC seized tanked by $881 million in a single month. 

This is not a line of thought Senator Lummis wants to accept or concede to. She stands by a crypto power play from one government that was against crypto to another that is pro-crypto.

Lummis suggests the decision could undermine the incoming Republican administration’s long-term crypto interests. 

Her letter also raised concerns about the lack of transparency regarding the government’s total Bitcoin holdings. She has questioned the protocols put in place to manage these assets. “Why has this information not been made readily available to the public in a transparent, up-to-date online format?” she asked.

US government’s BTC wallet activity raises questions 

Last month, blockchain analytics firm Arkham Intelligence reported that government-controlled wallets associated with Silk Road BTC moved $1.9 billion worth of crypto to Coinbase. The move spooked crypto investors, who interpreted it as a precursor to a large-scale liquidation.

Since then, traders and investors have asked the US government to explain its crypto decisions. This follows a similar trend in Germany.

ALERT: US GOVERNMENT MOVING $1.92B BTC TO NEW ADDRESS

Address: bc1q0av33ktzrkjps8exjex5gtv98vx225uqmzhspm pic.twitter.com/JSELsjFg5T

— Arkham (@arkham) December 2, 2024

While the DOJ has remained tight-lipped about its strategy, these actions have fueled speculation about the government’s intentions. 

Lummis has pushed for clarity on whether the incoming administration’s policies – including Trump’s National Bitcoin Reserve proposal – were considered in the decision-making process.

“The timing and aggressive pursuit of this sale raises serious questions about whether proper consideration has been given to the long-term strategic interests of the United States,” Lummis reiterated.

Calls for strategic Bitcoin holding and planning 

Senator Lummis called for a reassessment of the government’s approach to managing BTC assets. She urged the US Marshals Service to explore alternatives to liquidation. 

She outlined a couple of questions in her letter, focusing on the rationale behind the planned sale. She asked for lessons to be learned from past transactions, and the implementation of mechanisms to align asset management with national interests. 

“The magnitude of these holdings and their potential strategic importance to our nation’s future financial position demand careful consideration and transparency,” Lummis stated. She has called for the need for a more comprehensive strategy in dealing with Bitcoin assets.

President-elect Trump has been vocal in his support of BTC. As usual, he has criticized past government sales as “short-sighted” and advocated for a more fitting look into the crypto’s potential. 

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