The U.S. Supreme Court Ends the Legal Battle over $4.4 Billion Bitcoin Seized from the Silk Road Dark Web Marketplace

The U.S. Supreme Court has put an end to the legal battle over 69,370 Bitcoin that were seized from the Silk Road dark web marketplace.

The U.S. Supreme Court has declined to intervene in a legal battle over 69,370 Bitcoin (BTC) that were seized from the Silk Road dark web marketplace a decade ago. These BTC are currently valued at around $4.4 billion.

The Court’s decision clears the way for the U.S. government to sell these bitcoin, a move that could have significant implications for both the crypto market and the U.S. political environment.

Here's a summary of what happened and a look at what to expect next.

Battle Born's Claim Falls Short

At the heart of the legal tussle is a claim from Battle Born Investments, a company that argues it has legitimate rights to the seized Bitcoin. They built their case on the idea that they acquired the assets through a bankruptcy estate tied to a man named Raymond Ngan.

Federal and appellate courts dismissed these claims, and Battle Born’s last attempt to have the case heard by the Supreme Court was also unsuccessful. According to court documents, Battle Born planned to sell the bitcoin and distribute the proceeds to Ngan's creditors.

The Dark Web and the Bitcoin Connection

To help you understand the significance of this matter, let’s share a summary of this 2013 Silk Road case.

Founded in 2011 by Ross Ulbricht, the Silk Road platform gained notoriety as a hub for illegal activities. Hosted on the Tor network, the website allowed people to buy anything illicit—from drugs to weapons—by paying in Bitcoin. At its peak, Silk Road had millions of dollars in transactions.

In 2013, the FBI shut down the marketplace and arrested Ulbricht. The seized Bitcoin, tied to transactions on the platform, remained with the government, leading to this moment.

Adding another twist to the tale, the IRS later traced several BTC transactions to “Individual X,” the hacker who stole Bitcoin from Silk Road before authorities shut it down. Those funds were eventually seized by the U.S. government in what has become the largest cryptocurrency seizure to date.

What’s Next for the Seized Bitcoin?

Now that the Supreme Court has refused to hear the case, the U.S. government can sell the seized BTC. The U.S. Marshals Service would be overseeing the sale.

Some of the funds have already been moved to Coinbase Prime, and it looks like they are ready to auction the bitcoin. This sale can have broader implications not just for the crypto market but for the U.S. political environment.

During the Bitcoin Conference 2024 at Nashville, Presidential candidate Donald Trump has shared his plans regarding these seized Bitcoin. He shared his idea to use the seized BTC to create a “strategic bitcoin reserve” for the U.S. He suggested the current administration to hold bitcoin instead of selling it like the German government.

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