Senator Cynthia Lummis wrote to US authorities to express her concern over plans to liquidate 69,370 Bitcoins tied to Silk Road. She also expressed concerns about the destruction of documents pertaining to Federal Deposit Insurance Corporation’s activities regarding digital assets.
Lummis’ letter, addressed to Ronald L. Davis of US Marshals Services Director (USMS), questions the rationale and urgency behind the planned sales and highlights its possible long-term financial as well as strategic implications for US.
She said:
“These Bitcoin represent an opportunity to diversify America’s assets and create a financial foundation that will benefit future generations. The decision to hold or sell these assets will reverberate far beyond this administration, potentially impacting our nation’s financial sovereignty and strategic position for decades to come.”
Senator Lummis also contends that the USMS’s historical handling of similar Bitcoin sales has resulted in staggering losses for taxpayers. USMS reported that between 2014-2023 it sold 195.092 BTC at a price of $366.5 Million, worth now $18.9 Billion. This amounts to unrealized gains totaling $18.5 Billion.
Strategic management
Senator Lummis’ letter concerns financial losses and aligning public asset management with national interests.
The planned liquidation appears to conflict with President-elect Donald Trump’s July 2024 proposal to establish a “National Bitcoin Stockpile,”A policy that aims to keep 100% of the Bitcoins owned or acquired by US Government.
Citing recent court filings, Lummis criticized the Department of Justice’s (DOJ) justification for an expedited sale based on Bitcoin’s price volatility. She stressed that a hasty approach would undermine long-term planning, in particular during a transition of presidency.
Lummis’ concerns also extend to the lack of transparency and strategic foresight in handling seized BTC amounts.
FDIC whistleblowers
Lummis sent out a separate message as well. The letter “P” Marty Gruenberg is the Chairperson of Federal Deposit Insurance Corporation. The letter levied serious allegations about whistleblowers within the agency coming forward with claims of document destruction and staff intimidation related to the FDIC’s digital asset activities.
Laut Senator Lummis whistleblowers claim that FDIC destroys materials related to digital assets operations, while also monitoring and threatening its employees in order to stop them sharing information with Congress.
She said:
“This is illegal and unacceptable. You must ensure your staff cease and desist destruction of all materials and end all retaliatory actions immediately.”
The letter lists a variety of documents that the FDIC is required to preserve. These include records of the FDIC’s communications with state and federal agencies regarding digital asset policy, as well as the FDIC’s supervision and liquidation over crypto-related institutions like Silvergate Bank and Signature Bank.
Senator Lummis has also explicitly called on the preservation of documents which contain words like “crypto, Bitcoin, Ethereum, and digital asset.”
In addition to the directive, it includes guidelines on protecting electronic and metadata information. It emphasizes that any alteration or destruction must be prevented. Senator Lummis said that any attempts to undermine oversight will result in criminal referrals.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
