Supreme Court Clears US Way to Sell $4.4 Billion in Seized Silk Road Bitcoin

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US Supreme Court declined to hear an appeal regarding the ownership of 69,370 Bitcoins seized from the infamous Silk Road marketplace. This decision clears the way for the US government to move forward with the $4.4 billion BTC sale.

The decision effectively upholds a 2022 ruling by the US District Court for the Northern District of California, which ordered the government to liquidate Bitcoin under existing laws.

The case, brought by Battle Born Investments, alleged that the company acquired rights to Bitcoin through a bankruptcy estate connected to Silk Road. Battle Born claimed that Bitcoin was stolen by a person known as “Individual X” who allegedly took the funds from Silk Road.

However, the courts ruled against Battle Born and the Supreme Court refused to hear the appeal, the government is now free to auction Bitcoin.

The US Marshals Service is expected to handle the liquidation. Although several formalities remain before the sale can proceed, this will likely result in one of the largest seized Bitcoin sales in history.

US Govt he has already moved significant portions of Silk Road Bitcoin seized in recent months, presumably in preparation for the sale. It is also possible that Coinbase Prime, which has a custody agreement with the US Marshals Service, held the assets on behalf of the government during this period.

This comes as the handling of seized Bitcoin has become a point of debate in the 2024 election. In July, former President Donald Trump, speaking at the Bitcoin 2024 conference in Nashville, promised to create a “strategic Bitcoin stockpile” and keep all Bitcoin seized by the government if re-elected.

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