The US Marshal Service can proceed to sell the 69,370 Bitcoin (BTC) that the Department of Justice (DOJ) confiscated from the underground online marketplace Silk Road.
This comes after the Supreme Court turned down an appeal seeking to challenge the ownership of the seized assets.
US Marshall Service Gets Green Light To Sell Silk Road Bitcoin
In a Monday development, the Supreme Court decided not to give an audience to Battle Born Investments’ appeal. This decision effectively upholds the US District Court for the Northern District of California’s 2022 ruling. Then, the district court determined that the government liquidated the Bitcoin under existing laws.
In its appeal, Battle Born Investments pushed that it had acquired rights to the 69,370 Bitcoin in question via a bankruptcy estate involving Silk Road. Further, the Nevada-based hard moneylender argued that “Individual X,” an unnamed person, had stolen the BTC taken from Silk Road.
Read more: Who Owns the Most Bitcoin in 2024?
Following the court’s decision, the US government can proceed with the sale of the 69,370 BTC, valued at $4.4 billion. The USMS will handle the sale, which could go down in history as the largest sale of seized Bitcoin.
As BeInCrypto reported, the US government has already moved a significant portion of the Bitcoin it seized. In late July, $2 billion in DOJ-seized Bitcoin was transferred to new addresses, followed by another $593.5 million in BTC moved in mid-August, according to blockchain tracker Arkham.
All indications suggest that Coinbase Prime is serving as the custodian of the Bitcoin, given its custody agreement with the USMS. Some observers have linked the anticipated sale to the upcoming US elections, which are just weeks away.
“Trump pledged to never sell any of the US government’s bitcoin. Two days later, the Biden-Harris Administration moved $2 billion of Silk Road Bitcoin. Great look and a great way to reset with our industry,” Gemini founder Tyler Winklevoss said.
Similarly, economist Peter Schiff suggested that Donald Trump’s remarks may have prompted the Biden administration to act quickly. Schiff criticized Trump for revealing plans to halt the government’s Bitcoin sales before taking office, stating that this announcement may have accelerated the administration’s actions.
Finance lawyer Scott Johnsson also anticipated these sales, pointing to multiple transfers to custodial addresses as politically motivated preparations. He expects further details to emerge in the DOJ’s FY2024 report, as the USMS will disclose the sales at a time of its choosing.
“Whenever a transfer is ultimately made to Coinbase Prime (or other commingled exchange address), you can be sure USMS has already sold or is selling imminently,” 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 sales, especially following the Supreme Court’s decision. 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 over a longer period, the market impact might be reduced.
As of writing, BeInCrypto data shows BTC trading at $62,461, down nearly 2% in the past 24 hours.
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Lockridge Okoth
https://beincrypto.com/supreme-court-allows-the-us-to-sell-bitcoin/
2024-10-08 08:07:07
