U.S. Government Gets Greenlight Selling Bitcoin

The U.S. government finally received approval in the Northern District of California to liquidate the largest federal seizure in cryptocurrency history after a protracted four-year legal battle over billions of Bitcoin linked to the notorious Silk Road marketplace.

 

District Judge Richard Seeborg rejected a motion to prevent the forfeiture of 69,370 Bitcoin, allowing the Department of Justice to sell the $6.25 billion held.

Judge Seeborg has a reputation for handling significant cases. Recently, he dismissed claims that Alphabet’s Google disclosed user activity tracking sufficiently. In August, the tech giant may now go on trial.

The decision by itself does not ensure instant liquidation since federal asset forfeiture entails numerous administrative procedures and possible appeal windows,

The Department of Justice has sold some of the confiscated Bitcoin. The federal government transferred nearly $2 billion worth of Bitcoin tied to Silk Roa via  Coinbase on December 3, 2024. The government and Coinbase Prime have a custody agreement through the U.S. Marshals Service (USMS), a DOJ division.

The Justice Department has faced numerous legal challenges, including appeals to the Supreme Court and Ninth Circuit, before finally examining the Bitcoin stash from Satoshi’s time.

Several claimants, including Battle Born Investments, who had contested ownership rights through bankruptcy proceedings involving a person they thought was the original owner, ended their challenges with this ruling.

A Freedom of Information Act request to identify “Individual X,” the enigmatic person who turned over the Bitcoin to authorities in 2020, was the deciding factor in the final draw.

 

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ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
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