DOJ Cleared to Sell Over 69,000 Bitcoin Seized from Silk Road Case

• The DOJ is authorized to liquidate 69,370 BTC seized in connection with the Silk Road darknet marketplace.
• A Supreme Court decision upheld the DOJ authority, ending a years-long legal dispute over ownership of the Bitcoin stash.
• Bitcoin liquidation news briefly affected markets, with prices dropping from $95,000 to $93,800 before stabilizing around $94,300.

The United States Department of Justice has confirmed approval to sell 69,370 BTC held in connection with the Silk Road darknet marketplace. This support, estimated at $6.5 billion, marks one of the largest crypto seizures in history. The development follows a December 30 ruling by a federal judge, granting the DOJ permission to liquidate the assets after years of legal disputes.

Legal Battle Over Bitcoin Stash Ends

The Bitcoin, originally grasped from a figure identified as Individual X, became the subject of a contentious legal battle. Battle Born Investments, which laid claim to the assets through a default estate, opposed the DOJ’s motion to sell. 

The group claimed that the department used civil asset penalty procedures to avoid scrutiny, a claim dismissed by the court. Battle Born’s efforts to delay the sale, including a Freedom of Information Act (FOIA) request to uncover the identity of Individual X, also proved unsuccessful.

Supreme Court Declines Appeal

Last October, the United States Supreme Court declined to hear an appeal filed by Battle Born, effectively upholding the DOJ’s seizure. This decision cleared a significant hurdle for the DOJ, enabling the liquidation process to proceed. The DOJ cited Bitcoin’s volatile nature as a key reason for expediting the sale.

According to coinglass data at the time of the liquidation volume includes $1.45 million in short positions and $8.39 million in long positions across multiple exchanges. Binance recorded $516,050 in short liquidations and $4.11 million in long liquidations. OKX accounted for $508,830 in short liquidations and $680,520 in long liquidations. 

Source: Coinglass

Bybit had $334,360 in short liquidations and $2.34 million in long liquidations. HTX and CoinEx reported smaller figures. The chart indicates fluctuating liquidation volumes, with notable activity on specific dates correlating with Bitcoin price movements.