- The DOJ approved selling 69,370 Bitcoin worth $6.5 billion, resolving a legal dispute.
- Battle Born Investments failed in their legal challenge to stop the Bitcoin sale after multiple appeals.
- The DOJ’s Bitcoin liquidation could impact market dynamics, with Bitcoin’s price dropping from $95,000 to $93,800.
The US Department of Justice (DOJ) has received Court approval to sell approximately 69,370 Bitcoin seized in connection with the Silk Road darknet marketplace. Valued at around $6.5 billion, this marks the resolution of a protracted legal dispute over the cryptocurrency’s ownership.
On December 30, a federal judge authorized the DOJ’s request, dismissing claims by Battle Born Investments, which unsuccessfully pursued legal avenues, including Freedom of Information Act (FOIA) requests and appeals, to delay the sale. The DOJ emphasized Bitcoin’s price volatility to expedite liquidation, while the US Marshals Service will oversee the sale.
US Authorities Gain Control Over Seized Bitcoin Assets
The US Supreme Court’s refusal to hear Battle Born’s appeal in October cemented the government’s ability to liquidate the Bitcoin. This decision upheld a 2022 ruling by the US District Court for the Northern District of California, which determined that the Bitcoins were subject to forfeiture due to their connection to illegal activities on the Silk Road.
Battle Born had argued that their agreement to purchase assets, including the “1HQ3” wallet’s Bitcoin, from a bankruptcy estate gave them ownership rights. However, US authorities maintained that the assets were legally forfeited. The Ninth Circuit Court of Appeals affirmed this stance in August 2023, ruling that Battle Born lacked standing due to insufficient evidence tying the Bitcoins to their claim.
Persisting in legal challenges, Battle Born’s petition to the Supreme Court argued errors in lower courts’ interpretations of ownership claims. The Supreme Court’s denial effectively solidifies the lower courts’ rulings, granting the DOJ authority to liquidate the seized Bitcoin.
The sale of 69,370 Bitcoin, valued at $6.5 billion, is expected to be one of the largest liquidation events of seized cryptocurrency. Managed by the US Marshals Service, the sale could significantly impact market dynamics. Historically, news of government Bitcoin sales has stirred market sentiment. Recent reports show Bitcoin’s price falling from $95,000 to $93,800 after news of the DOJ’s plans.
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