The DOJ will sell 69,370 Bitcoin worth $6.5 billion seized from the Silk Road marketplace.
A federal judge approved the sale of Bitcoin ending a lengthy legal battle over the assets.
The U.S. Marshals Service will manage the sale of one of the largest crypto seizures in history.
The U.S. Department of Justice (DOJ) has received approval to sell 69,370 Bitcoin linked to the Silk Road darknet marketplace. The Bitcoin, worth $6.5 billion, was seized years ago in connection with the illegal platform. This marks the conclusion of a prolonged legal battle regarding the cryptocurrency’s ownership.
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On December 30, Chief U.S. District Judge Richard Seeborg ruled in favor of the DOJ hence rejecting a motion to block the asset forfeiture. Battle Born Investments, a claimant through a bankruptcy estate, failed to delay the sale. This decision solidified the government’s authority to liquidate one of the largest crypto seizures in history.
Legal Battle Over Bitcoin Seizure Ends
The case has been ongoing since October when the U.S. Supreme Court declined to hear Battle Born’s appeal. The appeal challenged Bitcoin's seizure and forfeiture. The group also pursued a Freedom of Information Act request to uncover the identity of “Individual X” who initially surrendered the Bitcoin. However, their efforts were unsuccessful.
Battle Born’s legal team criticized the DOJ’s use of civil asset forfeiture during the case, alleging it avoided proper scrutiny. The court, however, sided with the DOJ’s arguments such as concerns over Bitcoin’s price volatility as a reason for an expedited sale.
Market Impact and Next Steps
The news briefly impacted Bitcoin’s market value. The DOJ’s liquidation plans are expected to influence the crypto market further.
The U.S. Marshals Service will likely oversee the Bitcoin sale. This process is expected to proceed swiftly, given the scale of assets involved. The DOJ has not commented regarding the timeline or method of the liquidation.
This development concludes a significant chapter in cryptocurrency enforcement and highlights the government’s ability to manage complex crypto-related cases.
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