An important legal development has unfolded as the U.S. Supreme Court has chosen not to reexamine an appeal regarding the ownership of 69,370 Bitcoin [BTC] confiscated from the underground Silk Road marketplace.
This move comes after the Supreme Court denied certiorari in a case brought by Battle Born Investments against the U.S. government.
With the decision not to hear the case, the U.S. government is now able to proceed with the sale of the seized assets, effectively bringing this legal dispute to a close.
Recap of Events in 2022
In 2022, a federal court in California dismissed claims from Battle Born Investments, which argued that it had rights to the seized Silk Road Bitcoin through a bankruptcy estate.
The company claimed that the debtor, Raymond Ngan, was identified as “Individual X,” who allegedly took billions in BTC from Silk Road.
Due to insufficient evidence, the court ruled against Battle Born—a decision that was later upheld by a San Francisco appeals court.
As a result of the Supreme Court’s recent decision not to review the case, Battle Born has exhausted its legal options, paving the way for the government to sell the seized Bitcoin.
Impact on Bitcoin Market
Experts speculate that the potential sale of the confiscated BTC by the U.S. government could exert significant pressure on the cryptocurrency market and influence Bitcoin’s price trajectory.
Not surprisingly, the announcement itself had an immediate downward effect on BTC’s price, which had been experiencing an upward trend until recently.
According to CoinMarketCap, BTC is currently priced at $62,651, indicating a 1.36% decrease over the past 24 hours.
Previous Transfers of Seized Bitcoin
It is worth noting that the U.S. government has previously transferred substantial amounts of BTC seized from Silk Road to new wallets.
Between July and August, approximately $2.6 billion worth of Bitcoin was moved, often suggesting preparations for a sale.
However, these transfers might not necessarily indicate imminent sales, as the U.S. Marshals Service has a custody agreement with Coinbase Prime, indicating that the assets were shifted for safekeeping rather than immediate liquidation.
Before any sale occurs, the U.S. Marshals or any involved agency must comply with regulatory procedures.
Proposed Alternative Uses for Seized Bitcoin
Several U.S. officials have put forward alternative proposals for the seized Bitcoin.
For example, Democratic Representative Ro Khanna has proposed that the government retain these assets as a strategic reserve.
In addition, Republican presidential candidate Donald Trump has expressed interest in establishing a BTC reserve if elected.
During a recent cryptocurrency event in Nashville, Trump pledged to create a “strategic Bitcoin reserve” if he returns to office.
He declared,
“I am announcing that if I am elected, it will be the policy of my administration, the United States of America, to keep 100% of all the Bitcoin the U.S. government currently holds or acquires in the future.”