By The Rio Times | Created at 2025-01-09 22:09:42 | Updated at 2025-01-10 05:53:21
7 hours ago
The US Department of Justice received court approval to sell 69,370 Bitcoin worth $6.5 billion, DB News reported on January 9, 2025. This decision marks the end of a four-year legal battle over cryptocurrency seized from the Silk Road darknet marketplace.
Chief US District Judge Richard Seeborg rejected claims from Battle Born Investments and others seeking ownership of the Bitcoin stash. The ruling allows the DOJ to proceed with the sale of these assets.
The government already moved $2 billion worth of Bitcoin to Coinbase in December 2024. This transfer signaled preparations for the impending liquidation. The US Marshals Service manages custody of the seized cryptocurrency through Coinbase Prime.
The timing of this decision raises eyebrows in the crypto community. It comes less than two weeks before Donald Trump’s inauguration as president.
Trump campaigned on creating a strategic Bitcoin reserve and advised against selling government-held Bitcoin. This stance contrasts sharply with the outgoing administration’s actions.
U.S. Government Gains Approval to Sell $6.5 Billion in Seized Bitcoin. (Photo Internet reproduction)Bitcoin’s Price Dips Amid Government Plans for Liquidation
Market reactions to the news were swift. Bitcoin‘s price dropped from around $95,000 to below $92,000. Investors worry about potential market volatility if the government dumps large amounts of Bitcoin.
However, some analysts believe these concerns may be overblown. Cryptocurrency expert Van Straten points out that the market has absorbed over 1 million Bitcoin since September.
During this time, Bitcoin’s price surged from $60,000 to above $100,000. He argues that an orderly sale of 69,370 Bitcoin could occur with minimal market disruption.
The US government‘s Bitcoin holdings are substantial. Arkham Intelligence reports that the government currently possesses 198,109 Bitcoin, valued at approximately $18 billion. This amount includes seized assets from various criminal cases over the years.
The Silk Road case represents one of the largest cryptocurrency seizures in history. It highlights the government’s growing role in the crypto market. The DOJ’s handling of this sale could set precedents for future asset forfeitures and liquidations.
