The U.S. Department of Justice (DOJ) has received court approval to liquidate 69,370 Bitcoins (BTC) worth approximately $6.5 billion. These assets were seized from the notorious Silk Road black market. This decision, announced recently, was finalized on December 30, 2024, despite previous commitments from former President Donald Trump not to sell federal seized Bitcoins.
Key highlights
🔹 Legal victory for the Department of Justice
The Department of Justice prevailed in a legal dispute with Battle Born Investments, a party seeking ownership of Bitcoin assets through the alias "Person X."
🔹 Market volatility drives action
The Department of Justice argues that the price volatility of Bitcoin necessitates the timely liquidation of seized assets.
Trump's views on cryptocurrency
🔹 Commitment to cryptocurrency
Donald Trump, during his presidency, expressed support for cryptocurrency adoption. He even proposed the idea of creating a strategic Bitcoin reserve fund using seized assets.
🔹 Ambitious Bitcoin price target
Trump has publicly set an ambitious target of bringing the price of Bitcoin to $150,000 during his first term.
Previous liquidation efforts
🔹 March 2023 sale
In March 2023, the U.S. sold a portion of the seized Bitcoin, raising $216 million.
🔹 January 2024 announcement
A plan to liquidate an additional $117 million in BTC was announced in early January 2024, although updates on this sale are still pending.
The role of Coinbase and the Government holds
🔹 Custody on Coinbase
Since mid-2024, the U.S. government has used Coinbase as the custodian for its significant Bitcoin reserves, including assets from Silk Road.
🔹 Current cryptocurrency holdings
The U.S. government currently holds 198,100 BTC, worth $18.59 billion, along with other cryptocurrency holdings.
Impact on the market price of Bitcoin
Following the DOJ's liquidation announcement, the price of Bitcoin dipped slightly, reflecting concerns about the impact of such a large sale on the market.
This liquidation underscores the ongoing tension between regulators, the cryptocurrency market, and the legacy of Silk Road's illegal activities. Whether this sale will stabilize or further disrupt Bitcoin prices remains to be seen.
