Breaking News: Fire Sale!? Bitcoin

The U.S. Supreme Court Allows the Sale of 69,370 Seized Silk Road Bitcoins

Author: Lockridge Okoth

The U.S. Supreme Court has approved the sale of 69,370 bitcoins seized from Silk Road, worth approximately $4.4 billion. This decision solidifies the government's control over these bitcoins and rejects Battle Born Investments' appeal claiming ownership of the bitcoins.

The U.S. Marshals Service will oversee this sale, which could impact the bitcoin market amid political speculation. According to the court's ruling, the U.S. government can continue to sell these bitcoins, which may become the largest seizure sale of bitcoins in history.

Previously, the Supreme Court dismissed an appeal aimed at challenging the ownership of the seized assets, effectively supporting the 2022 ruling of the Federal District Court for the Northern District of California. Battle Born Investments pushed that it had obtained rights to the 69,370 bitcoins through the bankruptcy estate involving Silk Road, but this appeal was dismissed.

According to data from blockchain tracker Arkham, the U.S. government has transferred a significant portion of its seized bitcoins. In late July, $2 billion worth of bitcoins seized by the U.S. Department of Justice was transferred to a new address, followed by another transfer of $593.5 million in mid-August.

All signs indicate that, given the custody agreement between Coinbase Prime and USMS, Coinbase Prime is the custodian of the bitcoins. Some observers link the anticipated sale to the upcoming U.S. elections.