US Government May Sell 69,000 BTC

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The U.S. government has gained the right to liquidate 69,370 Bitcoins seized from the shuttered Silk Road market, a decision that could have a significant impact on the Bitcoin market.

Case background and legal disputes

A key issue in the case is the attempt by Battle Born Investments Company and other parties to prevent the Bitcoin from being liquidated. They appealed, claiming the government should have revealed the identity of a hacker named "Individual X" before liquidating the bitcoins. This mysterious figure hacked Silk Road more than a decade ago and helped the U.S. Department of Justice obtain these stolen Bitcoins. The hacker is believed to have acted under threat from Ross Ulbricht (the founder of Silk Road, who is currently in prison). Under the Freedom of Information Act (FOIA), the plaintiff wants to be identified in order to clarify the details behind the case. However, the U.S. District Court for the Northern District of California ultimately ruled in favor of the government, approving the government’s plan to continue liquidating the Bitcoins.

market impact

The ruling means the U.S. government can proceed with Bitcoin liquidations or auctions. Considering that 69,370 Bitcoins currently have a market value of approximately $6.7 billion (at current prices of approximately $94,312/BTC), this will create potential selling pressure on the market. For the Bitcoin market, which is currently struggling to recover, this could further increase short-term volatility.

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