2025-01-10
The U.S. government has received court approval to liquidate 69,370 Bitcoin, valued at $6.5 billion, seized from the infamous Silk Road marketplace.
The ruling, issued by Chief U.S.
District Judge Richard Seeborg in California, concludes a four-year legal
battle over one of the largest Bitcoin seizures in history.
The court's decision, dated December
30, 2024, denied a motion to block the forfeiture, clearing the Department of Justice
(DOJ) to proceed with the sale.
Despite the ruling, the liquidation
process will not begin immediately, as federal asset forfeiture requires
multiple administrative steps.
A Historic Seizure
The Bitcoin, linked to the dark web
marketplace Silk Road, was surrendered to authorities in 2020 by an individual
referred to in court documents as "Individual X."
The case faced legal challenges,
including disputes over ownership and attempts to identify "Individual
X" through Freedom of Information Act requests. However, these efforts
were ultimately unsuccessful.
The DOJ's custody of the Bitcoin has
drawn significant attention, particularly after the government moved nearly $2
billion of the assets to Coinbase on December 3, 2024, for potential sale. The
DOJ currently manages its crypto holdings through Coinbase Prime under the
oversight of the U.S. Marshals Service.
Timing Amid Political Transition
The ruling comes just 11 days before
President-elect Donald Trump, who has previously expressed support for
retaining seized Bitcoin as part of a strategic reserve, is set to take office.
The timing has sparked speculation
about potential shifts in policy toward government-held cryptocurrency. Trump
had campaigned on building a "Bitcoin stockpile" and criticized the
sale of such assets.
The DOJ, however, has emphasized the
urgency of the sale, citing Bitcoin's price volatility and the risk of legal
delays affecting market conditions.
Bitcoin has been trading between
$92,000 and $100,000 in recent weeks, further intensifying interest in how the
sale might impact market liquidity and volatility.
