US DOJ approves sale of 69,370 bitcoins, sparking crypto crash
In the year Crypto's 11% gain at the start of 2025 has stalled and the market is down another bleeding 5% this week, with Bitcoin, Ethereum and XRP falling sharply.
After the crypto crash, the United States Department of Justice (DOJ) approved the sale of 69,370 bitcoins seized from the Silk Road dark market. With a trade value of crypto assets estimated at $6.5 billion according to DB, the Bitcoin stash has been at the center of a protracted legal battle.
The court's decision on Dec. 30 denied Battle Born Investments' petition to claim ownership of the property in bankruptcy and to delay the sale.
Why are you selling now?
After a long legal tug-of-war, a federal judge has finally given the green light for the DOJ to cash in on crypto. The DOJ justified the liquidation, citing Bitcoin's price volatility and the risk of value loss if the assets are held for long periods of time. The spokesperson confirmed the department's intention to proceed with the sale in line with the court's ruling. The US Marshals Service is expected to manage the liquidation, which could be one of the largest crypto asset sales in history.
The decision comes after the US Supreme Court declined to hear an appeal against the arrest last October. Battle Born initially pursued a Freedom of Information Act request to determine the identity of “Individual X” who gave away the bitcoins, but that effort was unsuccessful.
News of the sale of assets ahead of Trump's inauguration on January 20 has crypto investors shaking up the market a bit. Crypto assets are already experiencing a downward trend due to the FOMC meeting.
Crypto response
The market's reaction to the news was immediate, with the price of Bitcoin down about 3%, from $95,000 to $93,800, before stabilizing around $94,300. Analysts suggest that such high liquidity could add downward pressure on the market, which would have a wider impact on Bitcoin's price stability.
A crypto user known as DefiBanked hints at a political motive behind the DOJ's plan to sell 69,000 bitcoins, suggesting that the proceeds may be headed to Ukraine. A move by the Biden administration to suppress Bitcoin.
The DOJ's move reflects its focus on resolving high-profile crypto cases and recovering assets linked to illegal activities. While the government has yet to release an official statement, it's a reminder to the crypto world that even digital assets are not beyond the reach of the law.
While the outcome of the case is a precedent for future crypto issues, this government sell-off could also create a major liquidity issue and many fear it is a planned strategy by Biden to stop Trump's Bitcoin Reserve Plan. There is a buzz in the market that this is a planned move to drop the price of Bitcoin as many analysts believe that this is a ploy to control Bitcoin prices.
