US authorities are reportedly disregarding pro-crypto Senator Cynthis Lummis’ deadline to explain what happened to the Bitcoin (BTC) seized from the defunct darknet marketplace Silk Road.
According to a new report by Bloomberg, anonymous people familiar with the matter say that the U.S. Marshals Service did not meet the January 31st deadline set by Lummis to answer questions about the seized BTC.
Lummis asked about the exact amount of BTC held by the government, what the plan for the coins was and whether there were any specific management protocols for them.
Silk Road’s founder, Ross Ulbricht, was pardoned by President Donald Trump last month years after he was handed a double life sentence for his role in operating an underground online marketplace that enabled bad actors to sell illegal drugs.
When Silk Road was shut down in 2013, US authorities seized laptops from Ulbricht containing hundreds of thousands of Bitcoin, which Ulbricht agreed to forfeit in a proceeding that is unaffected by Trump’s pardon.
As stated by Lummis in the letter,
“Based on historical sales data, the Service has sold approximately 195,092 Bitcoin between 2014 and 2023 for a total of approximately $366.5 million.
At current market prices, these same Bitcoin would be worth over $18.9 billion, representing a loss of more than $18.5 billion in unrealized value for American taxpayers – a staggering 98% loss in potential value. This pattern raises serious questions about the Service’s approach to managing and liquidating Bitcoin.”
At time of writing, the U.S. Marshals have not responded to Lummis’ letter.
BTC is trading for $94,752 at time of writing, a 4.2% decrease during the last day.
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