Emily Walker
On the second day of his new presidential term, President Donald J. Trump granted a full and unconditional pardon to Ross William Ulbricht, a prominent figure in the early days of Bitcoin and former operator of the now-closed Silk Road marketplace. This decision has sparked celebrations within the community, which has long regarded Ulbricht’s life sentences as excessively punitive for a nonviolent first-time offender.
In a post on Truth Social, Trump shared, “I just called the mother of Ross William Ulbricht to let her know that in honor of her and the Libertarian Movement, which supported me so strongly, I have signed a full and unconditional pardon for her son, Ross. The individuals who worked to convict him were among those who are now using government against me. He received two life sentences plus 40 years, which is absurd.”
Ulbricht was serving two life sentences plus an additional 40 years due to charges tied to his role in establishing Silk Road, an online marketplace that primarily used Bitcoin for transactions. Proponents argue that his harsh punishment was designed to attack both Silk Road and Bitcoin during a time when lawmakers were still unsure about the technology’s implications.
This pardon is in line with a commitment Trump made at the Bitcoin 2024 conference, where he vowed to release Ulbricht if he were re-elected. Vijay Boyapati, author of “The Bullish Case for Bitcoin,” emphasized Ulbricht’s significance to early Bitcoin supporters. He noted in a post on X, “Newcomers to Bitcoin may not understand why older fans care so much about Ross Ulbricht. He truly represented the early Bitcoin ethos more than anyone else. He was an entrepreneur who built a successful marketplace.”
Boyapati also stressed that Ulbricht championed “radical freedom” and the concept of trading peacefully and voluntarily. He often spoke about his beliefs regarding freedom and his motivations for creating the pioneering Bitcoin business, Silk Road, in the hopes of fostering a better world.
Many early Bitcoin supporters felt that Ulbricht’s severe punishment was unwarranted, likening it to punishing a member of their community for promoting what they believed to be a peaceful revolution. Boyapati reminded newer enthusiasts to recognize that there was a significant purpose beyond merely the financial gains associated with Bitcoin, highlighting the community’s libertarian principles.
Potential for a Strategic Bitcoin Reserve
This pardon has sparked new discussions regarding Trump potentially maintaining another campaign promise: the creation of a Strategic Bitcoin Reserve (SBR). At the Bitcoin 2024 conference, he suggested transferring cryptocurrency confiscated by law enforcement into a national reserve. With the pardon now granted, many are anticipating that the SBR initiative might be next on Trump’s agenda.
On Polymarket, the probability for a Strategic Bitcoin Reserve escalated from 28% to a peak of 44% following the news, even reaching 59% on Inauguration Day. However, prior to Ulbricht’s pardon, the odds had dropped as low as 28% due to the absence of a crypto executive order from the President.
A popular crypto analyst known as Byzantine General commented on X: “The fact that he fulfilled his promise to Ross is an encouraging indication that he will support cryptocurrency.”
David Bailey, CEO of BTC Inc and a key figure in influencing Trump’s pro-Bitcoin stance, also hinted at forthcoming crypto-related actions, stating, “Tonight is about Ross, but since I’m receiving many inquiries, I expect specific Bitcoin and crypto executive orders to emerge in the coming days. While I cannot predict their content or exact timing, I do anticipate the President will deliver on the SBR within his first 100 days.”
As of the latest updates, Bitcoin was trading at $105,558.