The U.S. Department of Justice (DOJ) has been granted the green light to sell 69,370 Bitcoin, valued at an astounding $6.5 billion, that was seized in connection with the Silk Road darknet marketplace. This approval marks the end of a prolonged legal battle regarding the ownership of the cryptocurrency, which was originally confiscated years ago.
The US Govt has been given the greenlight to liquidate 69,000 BTC ($6.5B) from Silk Road, an official confirmed to DB News today
— db (@tier10k) January 9, 2025
Interesting situation less than 2 weeks away from the new admin who vowed to not sell https://t.co/HqD1KnhJK3 pic.twitter.com/xn8ATSEL7H
On December 30, Chief U.S. District Judge Richard Seeborg ruled in favor of the DOJ, rejecting a motion to block the asset forfeiture. The case, which had been ongoing for several months, saw Battle Born Investments, a claimant linked to a bankruptcy estate, attempt to delay the sale. However, their appeal to prevent the liquidation was denied, solidifying the government’s authority to dispose of one of the largest crypto seizures in history.
Legal Battle Over Bitcoin Seizure Concludes
The legal conflict dates back to October when the U.S. Supreme Court declined to hear an appeal from Battle Born. The company had challenged the seizure and forfeiture of the Bitcoin, also pushing for a Freedom of Information Act request to identify the mysterious “Individual X” who initially surrendered the funds. Despite these efforts, the court sided with the DOJ, which cited Bitcoin’s volatility as a key factor in expediting the sale.
Battle Born’s legal team criticized the DOJ for using civil asset forfeiture without sufficient scrutiny. However, the court found the government’s actions to be justified, given concerns about market fluctuations that could affect the value of the seized assets.
Market Impact and the Road Ahead
The news of the DOJ’s Bitcoin sale briefly impacted the cryptocurrency market. Analysts expect the sale to have an ongoing influence on Bitcoin’s price dynamics. The U.S. Marshals Service will likely manage the liquidation, though the timeline and method for the sale remain unclear.
Also Read: Tether Under Fire – DOJ Investigation Triggers 10% USDT Depeg And $68K Bitcoin Plunge!
This marks the conclusion of a significant chapter in cryptocurrency enforcement, showcasing the government’s capacity to navigate complex crypto-related cases.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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