Key Takeaways
- Holding Bitcoin could have netted the US government $17 billion.
- David Sacks advocates for a strategic reserve management approach for Bitcoin, similar to gold, to create long-term value.
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The US government’s decision to sell seized Bitcoin over the past decade instead of holding it has cost taxpayers approximately $17 billion in potential gains, Trump’s AI and crypto czar David Sacks wrote on X today.
“Over the past decade, the federal government sold approximately 195,000 bitcoin for proceeds of $366 million. If the government had held the bitcoin, it would be worth over $17 billion today. That’s how much it has cost American taxpayers not to have a long-term strategy,” Sacks said.
US authorities actively moved Bitcoin last year, with the latest transfer occurring on December 2. Approximately $1.9 billion in Bitcoin was deposited into Coinbase Prime that day.
The purpose of these transfers, specifically whether they involve sales, remains unclear. Speculation suggests they could be part of routine asset management.
The US Marshals Service (USMS), which is responsible for managing seized assets, including crypto assets like Bitcoin, is facing major issues keeping track of its crypto holdings. This is particularly troubling as the government considers the possibility of establishing a national crypto reserve.
The USMS missed its deadline to provide a detailed report on its handling of 69,370 Bitcoin seized from the Silk Road case, worth approximately $7 billion. Senator Lummis had requested transparency on these assets, citing concerns about potential financial losses and mismanagement in previous Bitcoin sales.
Lummis criticized the USMS’s history of selling seized Bitcoin at prices far below current market value, which resulted in unrealized losses of over $17 billion for taxpayers.
She argued that the Bitcoin stash represents a strategic opportunity for the US and called for their transfer to the Treasury as part of a potential national Bitcoin reserve.
According to data tracked by Arkham Intelligence, the US government currently holds 198,109 Bitcoin, valued at $17.5 billion at current market prices.
Sacks, along with key government officials and crypto leaders, will gather at the White House Crypto Summit tomorrow. The event is expected to address and clarify plans for a Bitcoin reserve, along with the potential inclusion of other cryptocurrency assets.
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