The U.S. Marshals Service may proceed with the sale of the 69,370 Bitcoin (BTC) that the Department of Justice (DOJ) seized from the underground online marketplace Silk Road.

This comes after the Supreme Court rejected an appeal seeking to challenge the ownership of the seized assets.

US Marshals Service Receives Authorization to Sell Silk Road Bitcoin

On Monday, the Supreme Court decided not to hear Battle Born Investments’ appeal. This decision effectively upholds a 2022 ruling by the U.S. District Court for Northern California. At the time, the district court ordered the government to liquidate Bitcoin under existing laws.

In the appeal, Battle Born Investments claimed that it had acquired rights to the 69,370 Bitcoin in question through a bankruptcy estate involving Silk Road. Furthermore, the Nevada-based creditor argued that “Individual X,” an unidentified person, had stolen the BTC withdrawn from Silk Road.

Read more: Bitcoin Price Prediction 2024/2025/2030

Following the court ruling, the US government can proceed with the sale of the 69,370 BTC, valued at $4.4 billion. The USMS will be responsible for the sale, which could go down in history as the largest sale of seized Bitcoin.

As reported by BeInCrypto, the US government has already moved a significant portion of the Bitcoin it seized. In late July, $2 billion worth of Bitcoin seized by the DOJ was transferred to new addresses. Additionally, another $593.5 million worth of BTC was also moved in mid-August, according to blockchain tracker Arkham.

All indications suggest that Coinbase Prime is acting as a custodian for Bitcoin, given its custody agreement with the USMS. Some observers have linked the early sell-off to the upcoming US elections, which are just weeks away.

“Trump promised to never sell any US government Bitcoin. Two days later, the Biden-Harris Administration moved $2 billion worth of Bitcoin from Silk Road. Great look and a great way to start over with our industry,” said Tyler Winklevoss, founder of Gemini said.

Similarly, economist Peter Schiff suggested that Donald Trump’s comments may have prompted the Biden administration to act quickly. Schiff criticized Trump for revealing plans to halt government Bitcoin sales before taking office, saying that the announcement may have accelerated the administration’s actions.

Sale could impact the crypto market

Financial lawyer Scott Johnsson also anticipated these sales, pointing to multiple transfers to custodial addresses as politically motivated preparations. He expects more details to emerge in the DOJ’s fiscal year 2024 report, as the USMS will disclose the sales at a time of its choosing.

“Whenever a transfer is finally made to Coinbase Prime (or another mixed exchange address), you can be sure that USMS has either already sold or is imminently selling,” Johnsson shared.

Read more: How to Buy Bitcoin (BTC) and Everything You Need to Know

Meanwhile, markets are bracing for the impact of these expected sell-offs, especially in the wake of the Supreme Court ruling. A sudden influx of Bitcoin could create a supply shock, potentially limiting Bitcoin’s price gains. However, if the sale is conducted over-the-counter (OTC) or spread out over a longer period, the market impact could be reduced.

BTC Price Performance. Source: BeInCrypto

At the time of writing, data from BeInCrypto shows BTC is trading at $62,461, down nearly 2% in the past 24 hours.

The article US Supreme Court Authorizes Silk Road Bitcoin Sale appeared first on BeInCrypto Brazil.