The US government can now sell $6.5 billion worth of Bitcoin on Silk Road before Trump takes office

according to DB Newsthe US government was granted permission to liquidate 69,370 Bitcoins seized from the Silk Road market following a federal judge’s ruling on December 30.

Silk Road Bitcoin has been cleared for sale

The Ministry of Justice requested quick authorization for the sale, citing price volatility as the main reason to avoid further delays. Officials confirmed that the assets, worth about $6.5 billion, will be sold despite the upcoming administrative change in less than two weeks when the president who pledged to keep the confiscated bitcoin takes office.

DB reported that a years-long ownership dispute with Battle Born Investments ended when the group lost its bid to delay the liquidation. Battlebourne’s lawyer called the Justice Department’s approach a “procedural chicanery” and questioned the constitutionality of civil asset forfeiture, but the court upheld the government’s position. A Justice Department spokesperson stated that the government will move forward in line with the ruling, ending a long-running legal struggle over control of one of the largest Bitcoin stashes ever seized.

This development carries implications for broader market sentiment, especially as Bitcoin’s trading range hovered around $92,000 to $100,000 in recent weeks after breaking the $100,000 threshold last month. Many participants will now be monitoring the potential impacts on… Liquidity And volatility if large sell orders appear. Officials did not reveal specific plans for the sale mechanism, but the Ministry of Justice commented that it “will continue.”

The timing of the ruling in light of the change of administration

The timing draws particular attention because the incoming administration has campaigned on the idea of ​​a strategic reserve for Bitcoin, citing plans for it. Avoids Sell ​​any property. The current plan indicates that the liquidation may begin before the new president takes office. Official policy on seized cryptocurrencies I turned Several times under different leadership, sparking controversy among lawmakers and market analysts who view these transactions as a test of federal handling of digital assets.

As DB reported, the Silk Road seizures spanned several years, and this final ruling resolves questions about “Individual X,” whose identity Battle Born sought through a Freedom of Information Act request. This application was rejected, and the liquidation permission issued by the court remains in place.

The Justice Department cited concerns about the potential for sharp price movement in the event of legal delays, citing previous volatility surrounding government-controlled bitcoin sales. The agency’s position appears focused on taking advantage of current elevated market conditions, although waiting for the next administration could lead to alternative outcomes.

When was the first Bitcoin? He took over In 2013, 170,000 bitcoins worth $28.5 million were seized. Today, it would be worth nearly $16 billion if much of it had never been sold. Thus, according to history, selling Silk Road Bitcoin during market rallies has left billions on the table as its price continues to grow.

Should we celebrate governments that profit from confiscated Bitcoin?

previously Government sales Associated with the Silk Road, it involved transferring large sums of money to regulated exchanges. The newly approved plan appears consistent with past practices, but the size of this amount has been subject to greater scrutiny. The disposal of more than 69,000 Bitcoins could put pressure on the markets, despite the increase in Bitcoin liquidity over the years, and the growth of institutional participation. Bitcoin has surpassed all previous Silk Road sales. However, this time, there is a new president after 11 days in office who has pledged to turn Bitcoin into a strategic reserve.

However, some point out the irony of Bitcoin users praising the government for turning confiscated Bitcoin into a Fed asset, given Satoshi’s philosophy and Bitcoin’s purpose of challenging traditional financial institutions. This is particularly thought-provoking given the focus on freeing Ross Ulbricht and Trump’s promise to do so.

The official statement says the assets will be sold in a manner “consistent with the ruling,” leaving market participants to monitor any short-term price disruptions or broader political implications once the sale begins.

The truth is that the president-elect pledge The retention of all the bitcoins confiscated during the campaign highlights the tension between the outgoing administration’s actions and incoming policy preferences. Donald Trump enters the White House after 11 days. CryptoSlate will be closely monitoring Silk Road Wallets for any development ahead of Trump’s inauguration.