Key Points
- The U.S. Supreme Court has allowed the U.S. government to sell 69,370 seized Bitcoin.
- There are proposals to retain Bitcoin as a strategic reserve, including from Donald Trump.
The U.S. Supreme Court has declined an appeal regarding the ownership of 69,370 Bitcoin [BTC] that was originally confiscated from the Silk Road marketplace.
This decision results from the Supreme Court’s refusal to grant certiorari in the case brought by Battle Born Investments against the U.S. government.
Previous Legal Developments
In 2022, a California federal court dismissed claims from Battle Born Investments, which argued it had acquired rights to the confiscated Silk Road Bitcoin through a bankruptcy estate.
The debtor, Raymond Ngan, was claimed to be “Individual X,” who allegedly stole billions in BTC from Silk Road.
Battle Born’s claims were dismissed due to lack of compelling evidence, a decision later upheld by a San Francisco appeals court.
Impact on Bitcoin
The U.S. government’s potential sale of seized BTC could put significant pressure on the cryptocurrency market and impact Bitcoin’s price outlook.
The announcement itself had an immediate bearish impact on BTC’s price.
As per CoinMarketCap, BTC is now trading at $62,651, marking a 1.36% decline over the past 24 hours.
The U.S. government has transferred significant BTC holdings seized from Silk Road to new wallets.
Between July and August, around $2.6 billion worth of Bitcoin was moved, typically indicating preparations for sale.
However, these transfers may not indicate imminent sales, as the U.S. Marshals Service has a custody deal with Coinbase Prime, suggesting the assets were moved for secure holding rather than liquidation.
Proposals for Seized Bitcoin
There are proposals for alternative uses for the seized Bitcoin.
Democratic Representative Ro Khanna suggested the government retain these assets as a strategic reserve.
Additionally, Republican presidential candidate Donald Trump expressed interest in creating a BTC reserve if elected.
At a recent cryptocurrency conference in Nashville, Trump pledged to establish a “strategic Bitcoin stockpile” if he returns to office.
He 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 into the future.””