US Marshals Miss Deadline: Bitcoin Seized from Silk Road Sale Sparks Senator's Concern
The US Marshals Service (USMS) has missed a deadline to provide detailed information about its handling of Bitcoin seized from the Silk Road case to Senator Cynthia Lummis. Sources familiar with the matter had indicated this development.
Senator Lummis, in a letter to the USMS last month, expressed concerns about the agency's planned sale of approximately 69,370 seized Bitcoin, valued at about $7 billion at the current market price. She cited potential financial losses for taxpayers and a conflict with the Trump administration's policy directives.
Lummis' letter highlighted the agency's previous Bitcoin sales, noting that disposals of 195,092 Bitcoin between 2014 and 2023 generated around $366 million. Those same holdings would be worth over $18.9 billion at current market prices, representing what Lummis called a "staggering 98% loss in potential value."
The letter also noted a recent court filing where the Department of Justice cited Bitcoin price volatility to justify an expedited sale. She found the Department's aggressive pursuit of liquidation, despite pending legal challenges, troubling, especially during the presidential transition period.
The letter called for greater transparency in the USMS's management of Bitcoin assets, including public disclosure of holdings. It also sought to hold the agency accountable for past losses and ensure better decision-making in the future.
At the time the letter was published, there was a widespread expectation within the crypto community that Trump would issue an executive order (EO) to establish a national Bitcoin stockpile, a key promise from his presidential campaign.
On Jan. 23, the President signed an EO directing a working group to assess the feasibility of creating a national digital asset stockpile. While the order does not fulfill the specific promise of a dedicated Bitcoin reserve, it leaves open the possibility that Bitcoin could be part of a stockpile if it is established, which could potentially include Bitcoin and other crypto assets seized by federal authorities.
The USMS, which oversees digital assets seized during criminal investigations, manages an asset forfeiture program valued at approximately $7.6 billion as of September 2024. While the agency missed the deadline, a person familiar with the matter said it would brief Lummis and her staff in coming weeks and provide an inventory of its Bitcoin holdings.
