A federal court has granted the U.S. Department of Justice (DOJ) permission to sell approximately 69,370 Bitcoin, valued at around $6.5 billion, which was confiscated from the Silk Road marketplace. This decision, made on December 30, marks the conclusion of a lengthy legal dispute over the ownership of the assets.
The Bitcoin was originally seized from Silk Road, a dark web marketplace notorious for its involvement in illegal activities such as drug trafficking and cybercrime. The assets have been at the center of ongoing litigation, particularly regarding the rightful owner of the cryptocurrencies.
Battle Born Investments, which had attempted to stake a claim to the Bitcoin as part of a bankruptcy proceeding, was unsuccessful in delaying the sale or identifying the original owner of the seized assets.
The DOJ emphasized Bitcoin’s volatility as a key reason for the urgency in selling the assets. According to the DOJ, holding onto the cryptocurrencies for any longer could expose the government to significant financial losses due to fluctuating market conditions. This move follows the U.S. Supreme Court’s refusal to hear Battle Born’s appeal last October, which cleared the path for the sale to proceed.
El Salvador’s President, Nayib Bukele, expressed optimism over the sale, suggesting that it could present an opportunity for individuals to purchase Bitcoin at a lower price: “Maybe we’ll all get the chance to buy Bitcoin at a discount,” he said.
The announcement of the sale had an immediate impact on the Bitcoin market, with its value dipping from around $95,000 to $93,800. It has since rebounded slightly to $94,300, reflecting a near 3% decrease over the past 24 hours.
Once the liquidation process begins, the sale is expected to become one of the largest crypto asset sales ever conducted, overseen by the U.S. Marshals Service. The market will likely continue to scrutinize the impact of such a large sale, especially given Bitcoin’s significant rise in value since the shutdown of Silk Road in 2013.
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