Crypto markets are bracing themselves for volatility as the US government might soon start offloading a heavy amount of Bitcoin in the market. The US Govt will be able to sell $4.38 billion in Bitcoin after the Supreme Court decided to decline to hear the Silk Road Bitcoin seizure case.
The denial of the court hearing comes at a crucial time when Presidential candidate Donald Trump had already promised his resolve to release Silk Road founder Ross Ulbricht if he wins the elections for a second term.
What is The Silk Road Bitcoin Seizure Case?
The main bone of contention in the Silk Road Bitcoin seizure case resides between the Supreme Court and Battle Born Investments. The business had claimed that it had legal ownership of the Bitcoin that had been seized, making the assertion that was at the core of the court dispute.
Their case was based on the assertion that they obtained the assets from a bankruptcy estate connected to Raymond Ngan. Battle Born thought Ngan was the notorious “Individual X,” a hacker who had taken Bitcoin off of Silk Road and turned it over to the police. Nevertheless, these arguments were rejected by the federal and appellate courts.
Silk Road was the first significant darknet market fueled by cryptocurrencies, operated from 2011 to 2013, and at its height generated more than 20% of daily Bitcoin transactions. Ross Ulbricht, the operator of the Silk Road, was apprehended in 2013.
Another Silk Road case that made headlines was the James Zhong case. James Zhong, the individual who pilfered 50,000 Bitcoin from the notorious darknet market in 2012, was not apprehended by the US authorities until November 2021.
November 2021 saw the seizure of 50,676 Bitcoin by IRS Criminal Investigations (IRS-CI) from James Zhong, an American who pleaded to wire fraud after purchasing the cryptocurrency from the darknet marketplace Silk Road in September 2012. With a $3.36 billion market value, this was one of the largest cryptocurrency seizures ever.
Will The US Govt Sell Now Sell The Bitcoin Silk Road Fortunes?
The green light from the Supreme Court has now given the rights to the US government to take the ultimate action with the seized Bitcoin.
The United States government may decide to eventually sell the BTC holdings even though there are still a few more legal checks and formalities to complete before the bitcoin is really sold.
However, in the light that the US presidential elections are right around the corner, there might be more twists and turns to this case in the future.