U.S. Marshals Miss Deadline on Silk Road Bitcoin Fate

The U.S. Marshals Service has reportedly ignored a deadline set by Senator Cynthia Lummis to explain the fate of Bitcoin (BTC) seized from the defunct darknet marketplace Silk Road. According to a report, anonymous sources familiar with the matter claim that the Marshals did not meet the January 31st deadline to answer Lummis' questions about the seized BTC.

Lummis, a pro-crypto senator, had asked the Marshals for details on the exact amount of BTC held by the government, the plan for the coins, and any specific management protocols in place. The inquiry comes after President Donald Trump pardoned Silk Road's founder, Ross Ulbricht, last month. When Silk Road was shut down in 2013, authorities seized laptops containing hundreds of thousands of BTC from Ulbricht, which he agreed to forfeit.

In her letter to the Marshals, Lummis pointed out that the Service had sold approximately 195,092 BTC between 2014 and 2023 for a total of approximately $366.5 million. At current market prices, these same BTC would be worth over $18.9 billion, representing a loss of more than $18.5 billion in unrealized value for American taxpayers – a staggering 98% loss in potential value. Lummis' letter raised serious questions about the Service's approach to managing and liquidating BTC.

As of the time of writing, the U.S. Marshals have not responded to Lummis' letter. BTC is trading for $94,752 at the time of writing, a 4.2% decrease during the last day.