Supreme Court’s Decision on Seized Bitcoin
In a significant legal ruling, the U.S. Supreme Court has opted not to review an appeal concerning the ownership of 69,370 Bitcoin, originally confiscated from the notorious Silk Road marketplace. This decision follows a case brought by Battle Born Investments against the U.S. government regarding the seized cryptocurrency.
The Supreme Court’s denial to grant certiorari means that the U.S. government is now free to sell the confiscated Bitcoin, effectively concluding the legal battle that has lasted for years.
Background on the Legal Case
In 2022, a federal court in California dismissed claims from Battle Born Investments, which argued it had rights to the seized Silk Road Bitcoin through a bankruptcy estate. Battle Born claimed that the debtor, Raymond Ngan, was “Individual X,” who allegedly stole billions of dollars in BTC from Silk Road. However, the court found the evidence insufficient, ruling against Battle Born—a decision later upheld by a San Francisco appeals court.
With the Supreme Court’s recent refusal to hear the case, Battle Born’s legal options have been exhausted, paving the way for the government to liquidate the seized Bitcoin.
Potential Impact on the Bitcoin Market
The upcoming sale of the seized BTC is expected to exert pressure on the cryptocurrency market and could influence Bitcoin’s price trajectory. Following the announcement, BTC experienced a decline, trading at approximately $62,651, reflecting a 1.36% decrease over the past 24 hours, according to CoinMarketCap.
Previous Transfers of Seized Bitcoin
To date, the U.S. government has transferred significant amounts of seized Bitcoin from the Silk Road to new wallets. Between July and August, around $2.6 billion worth of BTC was moved, typically indicating preparations for sale. However, these transfers may not signal imminent sales, as the U.S. Marshals Service has a custody agreement with Coinbase Prime, suggesting the transfers were primarily for secure holding rather than immediate liquidation.
Before any sale can occur, regulatory protocols must be followed by the U.S. Marshals or any agency involved.
Alternative Proposals for the Seized Bitcoin
Some U.S. officials are exploring alternative uses for the seized Bitcoin. Democratic Representative Ro Khanna has suggested that the government retain these assets as a strategic reserve. Additionally, Republican presidential candidate Donald Trump has expressed interest in creating a BTC reserve if elected. At a recent cryptocurrency conference in Nashville, Trump stated:
“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.”