Senator Lummis urges halt to Silk Road Bitcoin sale, demands FDIC accountability on crypto records

Senator Cynthia Lummis despatched letters to US authorities expressing her considerations about plans to liquidate the 69,370 Bitcoins (BTC) linked to the Silk Highway and the alleged destruction of supplies associated to the actions of the Federal Deposit Insurance coverage Company ( FDIC) within the subject of digital property.

Within the letter addressed to Ronald L. Davis, director of the US Marshals Companies (USMS), Lummis questioned the urgency and rationale behind the deliberate sale and highlighted the potential long-term monetary and strategic implications for the US.

She added:

“This Bitcoin represents a chance to diversify America’s property and create a monetary basis that can profit future generations. The choice to retain or promote these property will resonate far past this administration and doubtlessly influence our nation’s monetary sovereignty and strategic place for many years to come back.”

Senator Lummis additionally claims that the USMS’s historic dealing with of comparable Bitcoin gross sales has resulted in staggering losses for taxpayers. Between 2014 and 2023, the USMS reportedly bought 195,092 BTC for $366.5 million, now value $18.9 billion, which equates to $18.5 billion in unrealized income.

Strategic administration

Senator Lummis’ letter addresses monetary losses and aligning the administration of public property with nationwide pursuits.

The deliberate liquidation seems to battle with newly elected President Donald Trump’s July 2024 proposal to ascertain a ‘Nationwide Bitcoin Stockpile’, a coverage supposed to seize 100% of all Bitcoin owned or acquired will be retained by the US authorities.

Citing current lawsuits, Lummis criticized the Justice Division’s justification for an expedited sale based mostly on Bitcoin’s worth volatility. She emphasised that such a hasty strategy undermines long-term strategic planning, particularly throughout a presidential transition.

Lummis’ considerations additionally prolong to the shortage of transparency and strategic foresight in dealing with seized BTC quantities.

FDIC Whistleblowers

In the meantime, Lummis additionally despatched a separate one pointed letter to Marty Gruenberg, Chairman of the Federal Deposit Insurance coverage Company (FDIC). The letter made severe allegations about whistleblowers inside the company coming ahead with claims of doc destruction and workers harassment associated to the FDIC’s digital property actions.

Based on Senator Lummis, whistleblowers have alleged that the FDIC is destroying supplies associated to its digital asset actions whereas monitoring and threatening workers to stop them from sharing data with Congress.

She said:

“That is unlawful and unacceptable. You need to be certain that your personnel stop and desist the destruction of all supplies and instantly finish any retaliatory actions.”

The letter particulars a variety of supplies that the FDIC should protect, from the supervision and liquidation of crypto-related banks reminiscent of Signature Financial institution and Silvergate Financial institution to data of communications with different federal and state companies concerning digital asset coverage.

Moreover, Senator Lummis explicitly referred to as for the preservation of any paperwork containing phrases reminiscent of “crypto, Bitcoin, Ethereum, and digital property.”

The directive additionally offers pointers for the safety of metadata and digital data, emphasizing the necessity to stop alteration or destruction. Senator Lummis warned that any confirmed try and hinder surveillance would end in prison referrals to the Division of Justice.

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