Historic Crypto Seizure: U.S. Government Secure $6.5 Billion Bitcoin Stash
The U.S. government secures approval to liquidate $6.5 billion in Bitcoin from Silk Road, marking a historic crypto seizure.
Outline:
- U.S. Secures Approval to Liquidate $6.5 Billion Bitcoin Seized from Silk Road
- Silk Road Bitcoin Stash: Legal Battle Ends with DOJ Ready to Sell
- Trump Era Begins with Bitcoin Stockpile and Crypto Policy Shifts
- Largest Government Crypto Sale: Market Braces for Potential Price Impact
- Silk Road Legacy: U.S. Government Prepares for Record Crypto Liquidation
The United States government has obtained final consent in the Northern District Court of California to liquidate cryptocurrency’s largest-ever federal seizure, bringing an end to a convoluted four-year legal battle over billions of Bitcoin linked to the infamous Silk Road marketplace.
According to a court document filed on December 30, Chief United States District Judge Richard Seeborg denied a motion to block the forfeiture of 69,370 Bitcoin, allowing the Department of Justice to sell the $6.5 billion assets.
Judge Seeborg is well-known for handling high-profile cases. He recently dismissed claims that Google, owned by Alphabet, appropriately disclosed how it collected user activities. The tech behemoth now faces a possible trial in August.
It’s unknown why the document about the seized Bitcoin has surfaced this week. The Department of Justice has declined to respond.
The action supports previous reports from October last year when it appeared that the US authorities were free to sell the seized Bitcoin from a Silk Road-affiliated wallet.
Decrypt analyzed the court document in response to DB News’ first report late Wednesday evening, which quoted officials who confirmed the order.
The ruling does not ensure rapid liquidation because federal asset forfeiture requires many administrative stages and likely appeals.
The DOJ has already sold some of the seized Bitcoin in recent months. On December 3, 2024, the US government transferred over $2 billion of Silk Road Bitcoin to Coinbase.
The United States Marshals Service (USMS), a subsidiary of the Department of Justice, maintains a custody arrangement with Coinbase Prime.
The Justice Department’s efforts to collect Satoshi-era Bitcoin have faced legal challenges, including appeals to the Ninth Circuit and Supreme Court.
It puts an end to various claimants’ claims, including Battle Born Investments, which had contended ownership rights in bankruptcy proceedings involving an individual they believed was the original owner.
The final draw was based on a Freedom of Information Act request to identify “Individual X,” the enigmatic entity who surrendered the Bitcoin to authorities in 2020.
Court filings from the case timeline show that the confiscated cryptocurrency came from Silk Road, a dark web store shut down by federal investigators in 2013.
The Bitcoin cache symbolizes the platform’s illicit transactions, which might result in one of the largest government crypto liquidations in history.
Trump’s Stand on Bitcoin Sell-Off
The resolution comes at a politically tense time for government cryptocurrency ownership.
President-elect Donald Trump, who advised holders to “never sell your Bitcoin” during a crypto conference in Nashville last July, has also committed to establishing a strategic “Bitcoin stockpile.”
Impact on the Crypto Market
The $6.5 billion Bitcoin sale could pressure crypto prices, raising concerns about market volatility. For the Trump administration, it signifies a shift in government crypto strategy, aligning with Trump’s Bitcoin stockpile vision. This historic liquidation highlights regulatory influence and may shape future policies impacting the broader digital asset landscape.
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