$4.4B Silk Road Bitcoin Sale Approved by Supreme Court

The US Marshals Service may proceed to sell the 69,370 Bitcoin (BTC) that the Department of Justice (DOJ) seized from the underground online marketplace Silk Road.

This happened after the Supreme Court rejected an appeal challenging the ownership of the seized properties.

The US Marshals Service got the green light to sell Silk Road Bitcoin

In Monday's development, the Supreme Court decided not to grant a hearing to Battle Born Investments' appeal. This decision effectively upheld the U.S. District Court for the Northern District of California in 2022. The district court then ruled that the government had enforced Bitcoin under existing laws.

In the appeal, Battleborn Investments asserted that it acquired rights to the 69,370 Bitcoin in question through a bankruptcy estate related to Silk Road. In addition, the Nevada-based hard money lender claimed that “Individual X”, an unnamed person, stole BTC from Silk Road.

Read more: Who will have the most Bitcoins in 2024?

Following of Court Decision, the US government can Continue the sale of 69,370 BTC worth $4.4 billion. USMS hosts the sale, which is the largest sale of Bitcoin in history.

According to BeenCrypto, the United States government has already moved a significant portion of its bitcoin holdings. In late July, $2 billion in bitcoin seized by the DOJ was transferred to new addresses, followed by another $593.5 million in BTC in mid-August, according to blockchain tracker Arkham.

All indications are that Coinbase Prime is serving as Bitcoin's custodian under its custody agreement with USMS. Some observers have linked the expected sell-off to the upcoming US election, which is weeks away.

“Trump has promised to sell any US government Bitcoin. Two days later, the Biden-Harris administration moved $2 billion of Silk Road Bitcoin. It's a great vision and a great way to reboot with our industry,” said Tyler Winklevoss, founder of Gemini.

Similarly, economist Peter Schiff suggested that Donald Trump's comments may have prompted the Biden administration to act quickly. Schiff criticized Trump for planning to end government sales of Bitcoin before he took office, an announcement that may have precipitated the administration's move.

Financial lawyer Scott Johnson also anticipated these sales, which showed many transfers to custodial addresses were politically motivated. Expect more details to emerge in the DOJ's FY2024 report, as the USMS will disclose the sale at its discretion.

“Ultimately, whenever a transfer is made to Coinbase Prime (or another integrated exchange address), you can be sure that USMS has already been sold or will soon be sold,” Johnson shared.

Read more: How to buy Bitcoin (BTC) and everything you need to know

Meanwhile, markets are bracing for the impact of these anticipated sales, especially following the Supreme Court ruling. A sudden influx of Bitcoin can create a supply shock, which can limit Bitcoin's price gains. However, if the sale takes place over the counter (OTC) or is spread over a longer period, the market impact may be reduced.

As of writing, BeinCrypto data shows BTC trading at $62,461, down nearly 2% in the last 24 hours.