The US government cleared to sell $6.5 billion in Bitcoin seized from Silk Road
Nickie Louise
Posted On January 9, 2025
Key Takeaways
- The DOJ has been cleared to sell 69,370 Bitcoin seized from Silk Road, valued at $6.5B.
- Battle Born Investments contested the sale but couldn’t block it.
- The decision comes just 2 weeks before the new Trump administration, which plans to explore a Bitcoin reserve strategy.
The US Department of Justice (DOJ) has received court approval to sell 69,370 Bitcoin, seized in connection with the infamous Silk Road darknet marketplace. Valued at around $6.5 billion, this massive crypto haul ends a long legal battle over ownership, according to a report from DB News.
“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.”
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
Interesting situation less than 2 weeks away from the new admin who vowed to not sell https://t.co/HqD1KnhJK3 pic.twitter.com/xn8ATSEL7H
— db (@tier10k) January 9, 2025
The timing of the decision is notable, coming just two weeks before the incoming Trump administration, which previously expressed interest in retaining such assets to establish a strategic Bitcoin reserve.
Court Clears the Sale Despite Opposition
On December 30, a federal judge ruled in favor of the DOJ’s request to liquidate the Bitcoin. This decision overruled opposition from Battle Born Investments, a firm claiming rights to the crypto stash through a bankruptcy estate. Battle Born had attempted to delay the sale, but their efforts fell short.
As part of their legal strategy, Battle Born sought to identify “Individual X,” the person who initially surrendered the Bitcoin, through a Freedom of Information Act (FOIA) request. However, this attempt also failed to yield results.
The firm’s legal team accused the DOJ of using “procedural trickery” to sidestep transparency through civil asset forfeiture. Despite these allegations, the court sided with the government, citing the volatility of Bitcoin prices as a reason to approve a swift liquidation.
A DOJ spokesperson commented, “The Government will proceed further consistent with the judgment in this case.”
A Historic Sale in the Making
The Supreme Court had earlier declined to hear Battle Born’s appeal against the seizure, effectively clearing the path for the DOJ to act. The US Marshals Service is expected to handle the sale, which, if executed as planned, will rank among the largest crypto liquidations ever conducted by a government.
When the seizure was initially upheld last October, Bitcoin was valued at $4.4 billion. Since then, its value has surged, with the DOJ now looking to capitalize on the appreciation.
Market Impact
The announcement briefly rattled Bitcoin markets. Prices slipped from $95,000 to $93,800 following the news but have since stabilized at around $94,300, reflecting a 3% drop in the past 24 hours, according to CoinGecko.
The DOJ has yet to release an official statement regarding the sale or its timeline. Market observers and crypto enthusiasts alike will be watching closely as the US government gears up to unload this monumental cache of Bitcoin.
