US Supreme Court Allows Government to Sell 69,000 Silk Road Bitcoins

The United States Supreme Court has made a significant decision regarding the forfeiture of 69,370 bitcoins originally linked to the Silk Road darknet marketplace. In a publication on October 7, the Supreme Court listed the decision under “CERTIORARI DENIED,” effectively allowing the US government to seize and potentially sell the Bitcoins, which are currently valued at approximately $4.4 billion.

The case in question revolves around a civil forfeiture action initiated by the US government following the shutdown of Silk Road. Battle Born Investments claimed legal ownership of the Bitcoins, stating that they had entered into an agreement in March 2018 to purchase assets, including the Bitcoins in the “1HQ3” wallet, from the Chapter 7 bankruptcy estate of Raymond Ngan. They alleged that these assets were tied to an individual known as “Individual X,” who had stolen the bitcoins from Silk Road and was associated with Ngan.

However, US authorities contested Battle Born’s claims, arguing that the Bitcoins were subject to forfeiture due to their connection with illegal activities on Silk Road. The US District Court for the Northern District of California ruled in favor of the government in 2022, ordering the disposal of the seized property in accordance with the law. Battle Born Investments appealed the decision, but the Ninth Circuit Court of Appeals affirmed the lower court’s ruling in August 2023.

Despite seeking a rehearing en banc and filing a petition for a writ of certiorari to the Supreme Court, Battle Born Investments’ legal efforts were unsuccessful. The Supreme Court’s refusal to review the case upholds the decisions of the lower courts, confirming that Battle Born lacks the necessary standing to contest the forfeiture of the Bitcoins. This outcome allows the US government to proceed with the sale of the 69,370 BTC, granting them the authority to dispose of the seized property in accordance with the law.

The potential sale of such a large amount of Bitcoin by the US government could have significant implications for the market. Valued at $4.4 billion, the liquidation of these Bitcoins could influence market dynamics and investor sentiment. Past instances of the US government selling seized Bitcoin have had a massive impact on the market, with former President Donald Trump even vowing to transfer all seized Bitcoin into a “strategic national stockpile.”

As of the latest update, Bitcoin is trading at $62,356, and the US government’s decision to sell the seized Bitcoins from the Silk Road case could have far-reaching consequences in the cryptocurrency market. Investors and industry experts will be closely monitoring the developments following the Supreme Court’s decision.