Supreme Court Clears Path for U.S. to Sell $4.4 Billion in Seized Silk Road Bitcoin

Supreme Court Decision on Seized Bitcoin

The United States Supreme Court has decided not to hear a case regarding the ownership of 69,370 Bitcoin seized from the notorious dark web marketplace Silk Road. This decision effectively allows the U.S. government to sell this Bitcoin, valued at approximately $4.38 billion.

In 2022, a federal court in California ruled against Battle Born Investments, a company that claimed to have purchased rights to the seized Bitcoin through a bankruptcy estate. The company argued that the individual involved in the bankruptcy, Raymond Ngan, was the elusive “Individual X” who had stolen billions from Silk Road. However, the court found insufficient evidence linking Ngan to this identity, thus dismissing Battle Born's claim. An appellate court later upheld this ruling.

With the Supreme Court’s refusal to hear the case, the path is now clear for the government to proceed with selling the seized Bitcoin. In recent months, the government has been actively transferring substantial amounts of Bitcoin, including $2.6 billion worth during July and August, likely in preparation for a sale. The U.S. Marshals Service has a custody arrangement with Coinbase Prime, suggesting that the exchange may be holding these assets on behalf of the government.

As various governments offload significant amounts of seized cryptocurrency, concerns are rising about potential market volatility. This topic has gained traction in the current election cycle, with former President Donald Trump asserting his intention to create a “strategic Bitcoin stockpile” if re-elected. Trump stated, "If I am elected, it will be the policy of my administration to keep 100% of all the Bitcoin the U.S. government currently holds or acquires in the future."

Edited by Andrew Hayward