Senator Cynthia Lummis sent letters to US authorities expressing concern over plans to liquidate the 69,370 Bitcoins (BTC) linked to the Silk Road and the alleged destruction of material related to the activities of the Federal Deposit Insurance Corporation ( FDIC) on digital assets.
In the letter to Ronald L. Davis, director of the United States Marshals Services (USMS), Lummis questioned the urgency and logic behind the planned sale and highlighted its potential long-term financial and strategic implications for the United States.
She added:
“These Bitcoin represent an opportunity to diversify America’s assets and create a financial foundation that will benefit future generations. “The decision to keep 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 maintains that the USMS’s historical handling of similar Bitcoin sales has resulted in staggering losses for taxpayers. Between 2014 and 2023, USMS reportedly sold 195,092 BTC for $366.5 million, which is now worth $18.9 billion, equivalent to $18.5 billion in unrealized profits.
Strategic management
Senator Lummis’s letter addresses financial losses and the alignment of 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 Reserve,” a policy intended to retain 100% of all Bitcoin held or acquired by the United States government. Joined.
Citing recent court filings, Lummis criticized the Department of Justice (DOJ) justification for an accelerated sale based on Bitcoin price volatility. He emphasized that such a hasty approach undermines long-term strategic planning, especially during a presidential transition.
Lummis’ concerns also extend to the lack of transparency and strategic foresight in the handling of seized BTC amounts.
FDIC Whistleblowers
Meanwhile, Lummis also sent a separate message. pointed letter to the president of the Federal Deposit Insurance Corporation (FDIC), Marty Gruenberg. The letter raised serious allegations about whistleblowers within the agency raising allegations of document destruction and intimidation of staff related to the FDIC’s digital asset activities.
According to Senator Lummis, whistleblowers have alleged that the FDIC is destroying materials linked to its digital asset operations while monitoring and threatening employees to prevent them from sharing information with Congress.
She stated:
“This is illegal and unacceptable. You must ensure that your personnel cease and desist from destroying all materials and cease all retaliatory actions immediately.”
The letter details a wide range of materials that the FDIC must preserve, from the supervision and liquidation of cryptocurrency-related banks like Signature Bank and Silvergate Bank to records of communications with other federal and state agencies about digital asset policies.
Furthermore, Senator Lummis explicitly called for the preservation of all documents containing terms such as “crypto, Bitcoin, Ethereum and digital asset.”
The directive also includes guidance on the protection of metadata and electronic information, emphasizing the need to prevent their alteration or destruction. Senator Lummis warned that any confirmed attempts to obstruct oversight would result in criminal referrals to the Department of Justice.
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