- The U.S. government is poised to sell over $4.4 billion worth of bitcoins seized from the Silk Road
- The Supreme Court has declined to hear an appeal regarding the ownership of the 69,370 Bitcoin, clearing the way for a possible auction
- The legal case was brought by Battle Born Investments, which claimed to have rights to the bitcoins through a bankruptcy estate, but courts have rejected these claims
The U.S. government could soon sell one of the largest Bitcoin hauls ever seized after the Supreme Court yesterday refused to hear an ownership dispute over 69,370 coins tied to the Silk Road marketplace. This decision follows multiple legal challenges from Battle Born Investments, which argued that it acquired rights to the cryptocurrency. However, both lower courts and the Supreme Court have rejected the company’s claims, paving the way for the sale of Bitcoin currently valued at $4.38 billion.
Battle Born Investments Fought Court Case
Silk Road was shuttered when its founder and operator, Ross Ulbricht, was arrested in October 2013, with tends of thousands of bitcoins seized as a result. The bitcoins in question were part of a lawsuit which Battle Born Investments tried to claim belonged to them, but a California district court rejected this in 2022, allowing the government to proceed with the sale under civil forfeiture laws.
Battle Born took the case to the Supreme Court, but yesterday the court rejected the appeal, meaning that the U.S. Marshals Service is expected to handle the auction of the seized assets, a move that could have a significant impact on the cryptocurrency market. Historically, government sales of large Bitcoin amounts have led to market fluctuations. The sale could mirror a similar event in Germany, where a large sale of Bitcoin caused noticeable market ripples.
Funds Already on the Move
The coins themselves were seized from someone named Individual X in November 2020, with Bitcoin developer Pierre Rochard asking legislators to pass a bill to halt the auctioning off of coins, arguing that a “large strategic reserve of bitcoin may be crucial for our national security.”
The government has already moved part of the Bitcoin stash earlier this year, likely in preparation for the sale, with Coinbase Custody looking after the coins having won the contract earlier this year.
