Additional Coverage:
- The federal government just got the greenlight to sell $6.5 billion in Bitcoin seized from Silk Road (newsbreak.com)
Government Cleared to Sell Massive Bitcoin Haul
The US Department of Justice has been authorized to sell off a significant amount of Bitcoin seized in the largest crypto asset seizure in history. A court has dismissed a motion from Battle Born Investments, a venture capital firm, which claimed rights to the assets.
Years-Long Legal Battle Ends
The Bitcoin, worth an estimated $6.5 billion, was confiscated in 2020 from an unknown hacker linked to the Silk Road darknet drug market. The hacker’s identity remains a mystery.
Government Bitcoin Auctions
The government typically auctions off seized cryptocurrency through the US Marshals Service. This sale would be one of the largest government liquidations of crypto ever.
Potential Market Impact
Investors are concerned that a large sale of Bitcoin could flood the market and drive down its price. However, the government has staggered auctions in the past to mitigate this risk.
Donald Trump and Bitcoin
The election of Donald Trump, a supporter of cryptocurrency, has sparked calls for a strategic national Bitcoin reserve to hedge against inflation. Trump has urged investors to hold onto their Bitcoin and supports legislation to have the government acquire one million Bitcoin.