U.S. Supreme Court Allows Sale of 69,370 Seized Bitcoins

The U.S. Supreme Court has decided not to interfere with a case about ownership of 69,370 Bitcoins, worth $4.38 billion, that were originally seized by the American government.

The U.S. Supreme Court has decided not to weigh in on a case over ownership of 69,370 Bitcoins, worth $4.38 billion, that were originally seized by the U.S. government on the Silk Road dark web marketplace. This decision clears the way for the sale of the Bitcoins.

Silk Road was an online darknet marketplace where users could buy drugs, weapons, and other illegal services. U.S. authorities shut down this multi-billion-dollar operation in 2013. Battle Born Investments claimed the right to the seized Bitcoins, arguing that a debtor from Silk Road's bankruptcy, Raymond Ngan, was the mysterious "Person X" who stole thousands of Bitcoins.

However, a federal court in California rejected Battle Born's claim last year, not convinced that Ngan was actually "Person X." Likewise, a judge from the San Francisco Court of Appeals dismissed the case on the grounds that the company had no valid claim to the Bitcoins.

The Supreme Court's decision now makes it more likely the U.S. government will sell the forfeited Bitcoins. What many in the crypto community fear is that this could have a short-term negative impact on Bitcoin's price.

The fate of the seized Bitcoins also came up in the campaign. Former Republican president Trump argued that a new administration under his leadership would preserve Bitcoins as the core of a national reserve.