A U.S. federal court has approved the sale of 69,370 Bitcoin seized from the Silk Road marketplace, concluding a four-year legal battle.
Chief U.S. District Judge Richard Seeborg denied attempts to block the forfeiture, allowing the Department of Justice (DOJ) to liquidate the Bitcoin, valued at $6.5 billion. This marks the largest cryptocurrency seizure in U.S. history, linked to the dark web platform shut down in 2013.
The liquidation process will take time due to necessary administrative steps and potential appeals. Some Bitcoin has already been sold, with the DOJ transferring nearly $2 billion in Silk Road Bitcoin to Coinbase on December 3, 2024, where the U.S. Marshals Service oversees custody.
The case faced various legal challenges, including appeals from claimants like Battle Born Investments, who argued ownership rights. The court dismissed these claims, and the identity of “Individual X,” who surrendered the Bitcoin in 2020, remains unknown. The seized funds are tied to illegal transactions on Silk Road and represent a significant government crypto liquidation.
This decision coincides with the upcoming inauguration of President-elect Donald Trump, who has shown support for Bitcoin. His administration plans to create a strategic Bitcoin reserve, which may impact future government policies on cryptocurrency.
The situation highlights the government’s increasing involvement in the crypto space. In October 2024, preparations for the liquidation were reported, with blockchain data showing Bitcoin transfers to Coinbase.
Judge Seeborg, known for handling high-profile cases, aims to finalize asset forfeiture while ensuring transparency. The Silk Road Bitcoin liquidation could set a precedent for how the U.S. government manages seized digital assets, especially as the global crypto market evolves under new political leadership.
