tl;dr
Senator Cynthia Lummis has raised concerns about the planned sale of 69,370 Bitcoins tied to the Silk Road and the alleged destruction of documents related to the Federal Deposit Insurance Corporation's (FDIC) activities on digital assets. She questioned the urgency and potential long-term implicati...
Senator Cynthia Lummis is raising concerns about the planned sale of 69,370 Bitcoins linked to the Silk Road and the alleged destruction of documents related to the FDIC's activities on digital assets. She questions the urgency and potential long-term implications of the sale, citing historical losses from similar Bitcoin sales by the US Marshals Services (USMS).
Lummis also criticized the lack of transparency and strategic foresight in handling seized BTC amounts. She sent a separate letter to the FDIC, alleging document destruction and staff intimidation related to the agency's digital asset activities, and demanded the preservation of all relevant materials.
In her letter to US authorities, Senator Lummis expressed concerns over the plans to liquidate the 69,370 Bitcoins tied to the Silk Road and the alleged destruction of material regarding the FDIC's activities on digital assets. She questioned the urgency and rationale behind the planned sale and highlighted its potential long-term financial and strategic implications for the US.
Senator Lummis also contends that the USMS's historical handling of similar Bitcoin sales has resulted in staggering losses for taxpayers, amounting to $18.5 billion in unrealized gains from the sale of 195,092 BTC for $366.5 million.
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 proposal to establish a "National Bitcoin Stockpile" in 2024.
Senator Lummis criticized the DOJ's justification for an expedited sale based on Bitcoin's price volatility, emphasizing that such a rushed approach undermines long-term strategic planning, especially during a presidential transition.
Lummis also sent a separate pointed letter to FDIC Chair Marty Gruenberg, levying 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.
According to Senator Lummis, whistleblowers have alleged that the FDIC is destroying materials tied to its digital asset operations while monitoring and threatening employees to prevent them from sharing information with Congress. She explicitly called for the preservation of all documents containing terms like "crypto, Bitcoin, Ethereum, and digital asset," warning of criminal referrals to the Department of Justice for any confirmed efforts to obstruct oversight.