Crypto Czar David Sacks has voiced sharp criticism over the U.S. government's handling of seized Bitcoin, revealing that taxpayers have lost over $17 billion due to premature BTC sales.
Over the last decade, the U.S. has offloaded nearly 195,000 BTC across multiple transactions, missing out on the cryptocurrency’s exponential price growth. With the incoming Crypto Strategic Reserve, the government's approach to confiscated digital assets is set to change.
In an X post, Sacks broke down the numbers, stating that the government sold its BTC stash for just $366 million. If those assets had been retained, they would now be worth over $17 billion, assuming Bitcoin’s trajectory toward the $100,000 mark. He blamed the lack of a long-term strategy for what he calls a massive financial blunder at the expense of American taxpayers.
The government’s BTC holdings were primarily accumulated through law enforcement actions, including the infamous Silk Road crackdown. In 2013, authorities seized nearly 170,000 BTC from Silk Road’s founder, Ross Ulbricht. Additional seizures followed in 2020, including 69,370 BTC and another 50,000 BTC linked to the deep web marketplace.
The U.S. Marshals Service (USMS) has been responsible for auctioning off these confiscated Bitcoins, with the Department of Justice (DoJ) greenlighting multiple sales. These auctions have long been met with criticism, with many arguing that the government has consistently undersold its BTC holdings without considering potential long-term gains.
The most recent BTC sale occurred just days before Donald Trump’s return to office, sparking speculation that the new administration might take a different approach. Trump has since announced the formation of a Crypto Strategic Reserve, aimed at securing Bitcoin and select altcoins as part of the country’s broader economic strategy.
Public sentiment around the past BTC sales remains strong. Crypto advocate Jane Adams took to X, calling it “not just mismanagement, but outright theft from American taxpayers.” She emphasized that the lost billions could have been allocated toward national development if policymakers had recognized Bitcoin’s long-term potential.
With the U.S. government now considering a formalized crypto reserve, large-scale Bitcoin sell-offs could soon become a thing of the past. Additionally, discussions at Friday’s White House Crypto Summit suggest that future budgets may allocate funds toward acquiring more BTC rather than liquidating holdings, marking a potential shift in federal crypto policy.
0 Comments