U.S. Senator Questions Government Bitcoin Sales, Highlights $18.5 Billion in Unrealized Losses

U.S. Senator Cynthia Lummis has reportedly launched an inquiry into the sale of Bitcoin by the U.S. Marshals Service, which oversees the Department of Justice’s Bitcoin holdings.

Her investigation highlights concerns over the financial impact of liquidating seized Bitcoin instead of holding it as its value appreciates.

Lummis questioned the agency’s decision to sell 69,370 Bitcoins tied to the Silk Road case, emphasizing the massive current market value of these assets, which now exceeds $6 billion. She argued that retaining the Bitcoin would have been a far more beneficial strategy for American taxpayers.

In a letter addressing the issue, Lummis expressed frustration over the historical handling of seized Bitcoin. Between 2014 and 2023, the U.S. Marshals Service sold roughly 195,092 Bitcoins for $366.5 million. Today, those same Bitcoins would be valued at over $18.9 billion, representing an unrealized loss of $18.5 billion—a 98% decrease in potential value.

Lummis pointed to this discrepancy as a significant mismanagement of public resources, urging immediate action to reassess how seized cryptocurrency assets are handled in the future.