Senator Cynthia Lummis sent letters to US authorities expressing her concerns over the plans to liquidate the 69,370 Bitcoins (BTC) tied to the Silk Road and the alleged destruction of material regarding the Federal Deposit Insurance Corporation (FDIC) activities on digital assets.

In the letter addressed to Ronald L. Davis, Director of the US Marshals Services (USMS), Lummis questioned the urgency and rationale behind the planned sale and highlighted its potential long-term financial and strategic implications for the US.

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 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. Between 2014 and 2023, the USMS reportedly sold 195,092 BTC for $366.5 million, now worth $18.9 billion, amounting to $18.5 billion in unrealized gains.

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 intended to retain 100% of all Bitcoin held or acquired by the 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 emphasized that such a rushed approach undermines long-term strategic planning, especially during a presidential transition. 

Lummis’ concerns also extend to the lack of transparency and strategic foresight in handling seized BTC amounts.

FDIC whistleblowers

Meanwhile, Lummis also sent a separate