The US Supreme Court has refused to hear a case involving 69,370 Bitcoin seized by the government from the notorious dark web marketplace, Silk Road. The Bitcoin, valued at approximately $4.38 billion, remains under government control, as Battle Born Investments’ claim to ownership was dismissed.
Battle Born Investments’ Legal Challenge Rejected
Battle Born Investments had argued that it acquired rights to the seized Bitcoin through a bankruptcy estate. The firm’s efforts to secure ownership were previously dismissed by a district court in 2022 and an appeals court in 2023. The San Francisco appellate judge ruled that Battle Born’s claim to the Bitcoin was invalid, stating that the company did not hold legitimate rights to the digital assets.
With the Supreme Court’s decision not to review the case, the US government is likely to proceed with its civil forfeiture action, opening the door for it to sell the Bitcoin.
Previous and Potential Sales by the US Government
The government has already moved approximately $2 billion worth of Bitcoin linked to Silk Road as recently as July 29, transferring the assets via the Marshals Service, which uses Coinbase Prime for cryptocurrency custody. Historically, large government sales of Bitcoin have led to market volatility. A similar incident occurred when the German government sold nearly 50,000 Bitcoin, valued at over $3.15 billion, causing significant fluctuations in the cryptocurrency market in June and July.
Although the next steps for the US government’s Bitcoin holdings are unclear, the Supreme Court’s ruling increases the likelihood of an eventual sale.
Political Perspectives on Bitcoin Seizures
The upcoming 2024 presidential election has brought Bitcoin into the political spotlight. Republican candidate Donald Trump has expressed interest in creating a “strategic Bitcoin stockpile” should he win the election on November 5. He also pledged to release Ross Ulbricht, the creator of Silk Road, who is currently serving a life sentence for crimes including money laundering and drug distribution.
On the other hand, Democratic candidate Kamala Harris has not yet shared her stance on how she would handle cryptocurrency assets seized by the government.
The Silk Road Legacy and Ulbricht’s Imprisonment
Silk Road, established in 2011 by Ross Ulbricht, was a black market platform that facilitated the illegal sale of drugs and other illicit goods using Bitcoin. Ulbricht was arrested in 2013 and is now serving a life sentence without parole for his involvement in the site’s operations. Trump’s promise to pardon Ulbricht, should he win the presidency, underscores the political and social debates surrounding cryptocurrency regulation and criminal justice reform.
