Court Approves Sale of $6.5B in Seized Silk Road Bitcoin, But Coins Remain in US Custody

The agency that seized billions in BTC from the dark web marketplace is still sitting on most of its crypto

  • US court approves liquidation of 69,370 bitcoins worth $6.5 billion connected to Silk Road case.
  • Court ruling dated December 30, 2024, rejects Battle Born Investments Company’s attempt to block the sale.
  • BTC price dropped 1.5% ($27 billion market cap loss) within six minutes after news circulated.
  • The seized bitcoins remain in US government custody pending administrative procedures.
  • Previous Silk Road-related Bitcoin sales include 2,000 BTC moved to Coinbase in March 2024.

A California federal court has authorized the US government to proceed with selling 69,370 bitcoins seized from a Silk Road-linked entity known as “Individual X.” The ruling, which rejected claims from Battle Born Investments Company, marks a significant development in the long-running Silk Road cryptocurrency saga.

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Market Impact and Timing Confusion

The cryptocurrency market experienced immediate volatility when news of the ruling spread on January 9, 2025. According to market data, Bitcoin’s price fell from $94,900 to $93,439 between 9:06 PM and 9:12 PM EST, representing a $27 billion reduction in market capitalization. The news originated from a social media post by DB News that garnered 4.8 million views.

Legal Background and Ownership Dispute

Battle Born Investments Company asserts ownership rights to the bitcoins through a bankruptcy estate connected to Raymond Ngan, whom they suspect is “Individual X.” The company’s Freedom of Information Act request to reveal Individual X’s identity was denied by federal authorities.

Historical Context and Previous Sales

The US government has established precedents for selling seized Silk Road-related cryptocurrencies. In March 2024, authorities transferred 2,000 bitcoins to Coinbase, which later became the official custody provider for government-seized digital assets. Additionally, the US Marshals Service liquidated 9,861.17 BTC in March 2023.

The current holdings remain visible on the blockchain, confirming that the 69,370 bitcoins haven’t been moved or sold yet. The Department of Justice must complete additional administrative requirements before proceeding with any sale.

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