A U.S. federal judge has approved the Department of Justice’s (DOJ) request to sell a whopping $6.5 billion worth of Bitcoin confiscated in connection with the Silk Road crackdown.
Popular media outlet DB reported the development today, noting that the DOJ has been authorized to sell 69,370 BTC, worth $6.5 billion. DB shared the report after a DOJ official confirmed the development in the early hours of today.
The US Govt has been given the greenlight to liquidate 69,000 BTC ($6.5B) from Silk Road, an official confirmed to DB News today
Interesting situation less than 2 weeks away from the new admin who vowed to not sell https://t.co/HqD1KnhJK3 pic.twitter.com/xn8ATSEL7H
— db (@tier10k) January 9, 2025
According to the anonymous source, the federal judge authorized the sale of the 69,270 BTC on December 30. However, the public had no knowledge of the decision until today, following a statement from a DOJ official.
Silk Road Bitcoin Controversy
For context, the United States government seized 69,370 Bitcoin from operators of the darknet marketplace Silk Road. This platform operated from 2011 to 2013, serving as a hub for illegal activities, including the sale of drugs. At the time, these malicious actors used Bitcoin as a form of payment to keep their operations discreet.
Following an intensive investigation, an unnamed entity referred to as ‘Individual X’ in the case surrendered all 69,370 Bitcoin to the government.
The government has been making significant moves to sell the assets, citing Bitcoin’s price volatility as the major reason why it needs to offload the BTC. However, its request was delayed by a lawsuit filed by Battle Born Investments, which claimed ownership of the funds through a bankruptcy estate.
In October, the U.S. Supreme Court declined to hear Battle Born’s appeal contesting the ownership of the seized asset, paving the way for the latest decision.
Following the court’s decision, counsel to Battle Born accused the DOJ of using ‘procedural trickery’ to abuse the Civil Asset Forfeiture process. Nonetheless, a DOJ spokesperson disclosed that the agency will proceed with the sale in accordance with the court’s judgment.
El Salvador President Reacts
Reacting to the court ruling, El Salvador’s president Nayib Bukele suggested that the move might give investors the opportunity to purchase Bitcoin at discounted prices. This indicates that President Bukele expects the price of Bitcoin to crash during the sale.
As expected, the development mounted heavy pressure on the broader crypto market. On Wednesday, Bitcoin crashed from around $95,500 to $92,800.
However, the premier cryptocurrency has rebounded above the $94,000 mark in the hours leading up to press time. It is currently trading at $94,303, representing a decline of 2.2% in the past day.
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