- The US Supreme Court declined to hear a case by Battle Born Investments claiming ownership of 69,370 Bitcoin seized from the Silk Road dark web marketplace
- This decision clears the way for the US government to sell the $4.4 billion worth of seized Bitcoin
- Silk Road founder Ross Ulbricht is serving a life sentence, but Donald Trump has promised to release him if elected president
The U.S. Supreme Court recently made a major decision regarding billions of dollars worth of Bitcoin seized from the Silk Road marketplace. This ruling could have significant implications for what happens to the massive cryptocurrency haul.
The Supreme Court Declines to Hear the Case
The Supreme Court declined to take on a case concerning the ownership of 69,370 Bitcoin, worth $4.38 billion, that the U.S. government seized from the dark web marketplace Silk Road.
The request for review was brought by Battle Born Investments, a company that claimed it had purchased rights to the seized Bitcoin through a bankruptcy estate. By refusing to hear the case, the Supreme Court’s decision makes it much more likely that the U.S. government will succeed in its civil forfeiture action and be able to sell the Bitcoin.
Battle Born Previously Failed to Claim Ownership
Battle Born had previously failed to convince a district court in 2021 and an appeals court in 2022 that it had acquired the Bitcoin through a bankruptcy claim after Silk Road shut down in 2013. A San Francisco appellate court judge tossed the case last year, saying the firm didn’t have a valid claim to the massive Bitcoin haul.
What Happens Next With the Seized Bitcoin?
With the Supreme Court declining to take the case, it clears the way for the U.S. government to sell the stack of seized Bitcoin. The government already moved about $2 billion worth of the Silk Road-linked Bitcoin in late July.
It’s unclear precisely what the U.S. intends to do with the remaining coins. Some politicians, like Republican presidential candidate Donald Trump, have pledged to build a strategic Bitcoin stockpile if elected. The fate of the billions in seized crypto from Silk Road rests in the outcome of the upcoming 2024 election.
The Origins of the Silk Road Bitcoin Stash
The Bitcoin haul originally came from Silk Road, a dark web marketplace created in 2011 by Ross Ulbricht. Ulbricht is currently serving a life sentence for charges including conspiring to commit money laundering and distributing narcotics.
Silk Road enabled users to anonymously buy and sell illicit goods and services, with Bitcoin serving as the payment method. The marketplace brought in over $1 billion in revenue before being shut down in 2013, at which point the U.S. government seized around 170,000 Bitcoin.
Ulbricht’s conviction and sentencing was a landmark case for crypto’s use in illegal activities. The Supreme Court’s recent decision marks another significant milestone in the years-long saga over who rightfully owns this massive Bitcoin trove.
