The US Government Has Been Given the Green Light to Liquidate 69,000 BTC ($6.5B) From Silk Road

The U.S. Department of Justice (DOJ) has received approval to sell roughly 69,370 Bitcoin, valued at $6.5 billion, seized from the Silk Road darknet marketplace

The U.S. Department of Justice (DOJ) has received approval to sell roughly 69,370 Bitcoin, valued at $6.5 billion, seized from the Silk Road darknet marketplace, resolving a lengthy ownership dispute.

On December 30, 2024, Chief U.S. District Judge Richard Seeborg rejected a motion to prevent the forfeiture, siding with the DOJ’s request to sell the cryptocurrency assets.

The US Govt has been given the greenlight to liquidate 69,000 BTC ($6.5B) from Silk Road, an official confirmed to DB News today

Interesting situation less than 2 weeks away from the new admin who vowed to not sell

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Private investment firm Battle Born Investments, which claimed ownership of the Bitcoin through a bankruptcy estate, was unsuccessful in blocking the sale after bringing an appeal in October 2024 challenging the seizure of the Bitcoin stash. The group had filed a Freedom of Information Act (FOIA) request to reveal the identity of “Individual X,” the person who originally handed over the Bitcoin, but their efforts were ultimately blocked.

The firm’s lawyers accused the DOJ of using “procedural trickery” in its handling of the case, claiming the department relied on civil asset forfeiture to bypass scrutiny.

In court, the DOJ argued that Bitcoin’s price volatility was a key reason for their push to quickly sell the seized assets. “The Government will proceed further consistent with the judgment in this case,” a DOJ spokesperson said.

The U.S. Marshals Service is slated to handle the liquidation of the seized Bitcoin, a process that, if finalized, will rank among the largest government-led crypto asset sales to date.

The ruling does not ensure an immediate sale, as the federal asset forfeiture process involves several administrative procedures and could be subject to further appeals.

The U.S. government has already sold parts of the seized Bitcoin in recent months. On December 3, 2024, nearly $2 billion worth of the digital currency was transferred to Coinbase. This transaction is part of an ongoing custody arrangement between the DOJ’s U.S. Marshals Service and Coinbase Prime.

The Bitcoin seized from the Silk Road case, originally valued at only a few dollars per coin, has experienced a dramatic rise in value over the years. This surge has been particularly notable since President-elect Donald Trump’s increasing interest in cryptocurrency.

Trump’s vocal support for digital assets has played a role in the growing mainstream acceptance of Bitcoin, as his statements and political influence have raised awareness and sparked discussions about the future of the cryptocurrency market.

The upcoming sale is expected to have significant implications for both the cryptocurrency market and government asset recovery strategies.