- Trump’s pardon of Silk Road founder, Ross Ulbricht, has been interpreted by some in the crypto community as increasing the likelihood of the US establishing a strategic Bitcoin Reserve.
- The two issues aren’t directly linked, but the Silk Road was a big early user of Bitcoin transactions and some see Ulbricht’s pardon as foreshadowing other pro-crypto policies.
- Critics of the pardon and the crypto world’s embrace of Ulbricht, point out he ran an enormous drug distribution platform that significantly contributed to America’s opioid and meth epidemics.
Donald Trump’s full and unconditional pardon of Silk Road founder, Ross Ulbricht, has sent hopes soaring that he’ll follow through on one of his other big crypto campaign promises — establishing a strategic Bitcoin reserve.
Trump repeatedly claimed during the campaign that he’d establish a strategic Bitcoin reserve, but being that he’s Donald Trump nobody really knew whether to believe him.
The early signs of Trump’s intentions for crypto weren’t great — just before his inauguration, Trump’s team launched a pair of memecoins, $TRUMP and $MELANIA, sparking fears the very stable genius might not be taking crypto seriously.
But since then things have looked a little better for crypto with Trump’s crypto czar, David Sacks, declaring a new age for crypto had “just begun”. Now, Ulbricht’s pardon has been interpreted by some as signalling Trump is indeed serious about crypto.
Related: Experts Unpack the Complexity of a US Bitcoin Reserve: Low on Priority List
Not everyone agrees that Ulbricht’s pardon is a good sign for crypto or anything else. Influencer Ed Krassenstein posted on X / Twitter pointing out that the man received multiple life sentences for good reason — he sat atop a drug distribution empire that super-charged America’s opioid and meth epidemics, profiting off the suffering and misery of regular Americans.
At the time of writing the Polymarket odds of the US government establishing a strategic Bitcoin reserve in 2025 sat at 58%, up 7% on the week.
Silk Road Founder Pardon Interpreted as A Good Sign by Bitcoin Maxis
The pardoning of Ulbricht isn’t directly linked to the likelihood of Trump establishing a strategic Bitcoin reserve. It’s just been interpreted (over-interpreted?) by some Bitcoin true-believers as evidence Trump is a ‘yuge’ crypto guy.
The logic seems to go something like: ‘Trump loves crimes -> Silk Road allowed Bitcoin transactions -> Trump pardoned the Silk Road guy -> Silk Road guy loves crimes -> strategic Bitcoin reserve’.
Posting on X / Twitter the CEO of Bitcoin magazine, David Bailey, insisted the odds of a Bitcoin reserve “skyrocketed” after Ulbricht’s release (he did not explain why):
Some, such as adjunct professor at Pepperdine University, Tom Lombardi noted this lack of explanation, asking:
How do you draw that line?
Ross is more about the Libertarian movement, less about bitcoin, yeah?
Tom Lombardi, Adjunct professor at PepperdineAs Lombardi highlights, given the lack of explanation, it’s possible Trump’s pardoning of Ulbricht is more about their shared love of crimes, rather than their shared love of Bitcoin.
Having said that, Trump’s repeated vows to establish a Bitcoin reserve during the campaign would seem to suggest he plans to establish a Bitcoin reserve — but with Trump it’s hard to know which utterances to put stock in and which to ignore.
Related: Bitcoin Drops from New All-Time High After Trump Fails to Mention Crypto in Inauguration Speech
Dissenting Voices from Within Crypto
At least one prominent figure inside crypto wasn’t celebrating Ulbricht’s release. Crypto influencer and host of the podcast ‘KrassenCast’, Ed Krassenstein, was scathing in his assessment of Ulbricht on X / Twitter, asking those celebrating his release “do you really understand who you’re defending?”
Krassenstein gave his readers a quick refresher on how Ulbricht’s Silk Road actually operated:
His site openly profited from the sale of heroin, fentanyl, cocaine, methamphetamine, and other dangerous substances, pocketing commissions of 8–15% on every transaction. This wasn’t a small operation—it was a criminal empire disguised as a libertarian experiment…This platform didn’t just hurt those who willingly participated—it had deadly ripple effects. How many Americans died from overdoses linked to Silk Road sales? How many cartel-supplied drugs found their way into communities through this platform? Ulbricht turned a blind eye to the human cost, choosing instead to profit off addiction and death.
Ed Krassenstein, Crypto influencerKrassenstein concluded his posted with a question:
Imagine if someone in America set up a flea market with sections labeled ‘Fentanyl,’ ‘Cocaine,’ and ‘Heroin’ and then charged the cartels to sell drugs at booths in these sections for a 15% cut. Would Republicans really be OK with that? Honestly?
Ed Krassenstein, Crypto influencerAsked why people are defending Ulbricht, Krassenstein suggested many of them likely don’t know who he is or what he did, saying “I think Bitcoiners love him because he used Bitcoin on his site and claimed to be libertarian. I honestly don’t think most of them even know what he did.”
As if to confirm these suspicions, the founder of the Strike Bitcoin wallet, Jack Mallers, tweeted celebrating Ulbricht and announcing the launch of a merch line — the proceeds of which will go entirely to the Silk Road founder:
Ross, the man who taught us all so much about freedom, is finally free.
We launched merch in his honor, with 100% of proceeds going to Ross. $50k sold in the first hour, and we’re just getting started.
Welcome home, Ross. Bitcoiners stand with you!”
Jack Mallers, Founder of Strike Bitcoin walletIt’s unclear what this all means for the likelihood of a strategic Bitcoin reserve in the US. But one thing’s for sure — it certainly seems to mark a sharp departure from the nation’s previous stance on drug dealers.
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