The U.S. government has obtained court approval to liquidate the largest federal cryptocurrency seizure in history, totaling 69,370 Bitcoins (BTC) valued at $8,478,824,964,66.5 billion. The ruling ends a four-year legal battle over the Silk Road dark web marketplace, which was shut down in 2013. The approval was granted by U.S. District Judge Richard Seeborg, who denied a motion to block the forfeiture of the assets, allowing the Department of Justice (DOJ) to proceed with the sale.

The path to liquidating these Bitcoins involved several legal and administrative steps, including appeals to higher courts. Some of the seized Bitcoins had already been sold by the DOJ, with a significant transfer of nearly $8,478,824,964,62 billion in BTC to Coinbase in December 2024. The government maintains a custodial arrangement with Coinbase Prime through the U.S. Marshals Service (USMS).

The final decision was based on a Freedom of Information Act request and overcame challenges from several claimants, including Battle Born Investments, which claimed ownership rights. The seized crypto assets were traced back to Silk Road, marking one of the largest government liquidations of cryptocurrencies in history and coinciding with a politically significant moment for the industry. (Bitcoin Portal)