US authorities are reportedly ignoring the deadline set by pro-crypto Senator Cynthia Lummis to explain the fate of the seized Bitcoin from Silk Road, the now-defunct darknet marketplace.
According to a recent report by Bloomberg, anonymous sources familiar with the matter have stated that the U.S. Marshals Service failed to meet Lummis’ deadline of January 31st to address inquiries regarding the seized BTC.
Lummis inquired about the specific amount of Bitcoin held by the government, the plan for the coins, and whether there were any established management protocols for them.
The founder of Silk Road, Ross Ulbricht, was pardoned by President Donald Trump last month, years after receiving a double life sentence for his involvement in running an underground online marketplace facilitating the sale of illegal drugs.
When Silk Road was shut down in 2013, US authorities confiscated laptops from Ulbricht that contained hundreds of thousands of Bitcoin. Ulbricht agreed to forfeit the Bitcoin in a separate legal proceeding that remains unaffected by Trump’s pardon.
As stated in the letter by Lummis, “Based on historical sales data, the Service has sold approximately 195,092 Bitcoin between 2014 and 2023, totaling approximately $366.5 million. At current market prices, these same Bitcoin would be worth over $18.9 billion, resulting in an unrealized loss of more than $18.5 billion for American taxpayers – an astounding 98% loss in potential value. This pattern raises serious questions about the Service’s approach to managing and liquidating Bitcoin.”
As of now, the U.S. Marshals have not responded to Lummis’ letter.
BTC is currently trading at $94,752, representing a 4.2% decline in the last 24 hours.
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