US Supreme Court Declines Case Over $4.4B Silk Road Bitcoin Seizure

The United States Supreme Court has declined to hear a case concerning the ownership of 69,370 Bitcoin — valued at approximately $4.38 billion — that was seized by the US government from the infamous dark web marketplace, Silk Road. The rejection came in response to a petition filed by Battle Born Investments, which claimed it had purchased rights to the Bitcoin through a bankruptcy estate.

Battle Born’s Claim and Court Rulings

Battle Born Investments argued that it acquired the rights to the seized Bitcoin through a bankruptcy claim involving Raymond Ngan, a debtor in the case. The firm alleged that Ngan was the mysterious “Individual X,” who allegedly stole billions of dollars worth of Bitcoin from Silk Road before its shutdown in 2013.

Despite these claims, Battle Born’s efforts to reclaim the Bitcoin were unsuccessful. A district court ruled against the company in 2022, and the decision was upheld by an appellate court in San Francisco in 2023. The courts determined that Battle Born did not have a valid claim to the Bitcoin. The Supreme Court’s refusal to take up the case effectively ends the legal battle, allowing the US government to retain possession of the digital assets.

Potential Sale of Seized Bitcoin

With the Supreme Court’s decision, the US government could now proceed with selling the seized Bitcoin. In the past, such large-scale offloading of Bitcoin by governments has caused significant market volatility. A notable example occurred when the German government sold nearly 50,000 Bitcoin, worth over $3.15 billion, over a few weeks in June and July. The sale created temporary fluctuations in the cryptocurrency market.

It remains unclear how the US government plans to handle the seized Bitcoin. There has been no official statement regarding whether the Bitcoin will be sold or retained. However, the potential sale could have a notable impact on the cryptocurrency market.

Political Perspectives on Bitcoin

The case has brought attention to how future administrations might handle cryptocurrency assets seized by the government. Republican presidential candidate Donald Trump has publicly stated his intention to build a “strategic Bitcoin stockpile” if elected in the November 5 presidential election. He has also pledged to release Ross Ulbricht, the founder of Silk Road, who is currently serving a life sentence for multiple charges, including money laundering and narcotics distribution.

On the other hand, Democratic candidate Kamala Harris has not made any public statements regarding what her administration would do with seized cryptocurrency should she win the election. This creates a potential point of divergence between the two candidates on how the US government might manage its crypto holdings in the future.

Silk Road and Its Legacy

Silk Road, created by Ross Ulbricht in 2011, was one of the most notorious online black markets, known for enabling illegal drug transactions and other criminal activities using Bitcoin as the primary currency. Ulbricht’s arrest and the shutdown of Silk Road in 2013 marked a significant event in the history of cryptocurrency, with large amounts of Bitcoin being seized by the US government

With the Supreme Court’s recent decision, the fate of the Silk Road Bitcoin now rests with the US government, as Battle Born’s claims have been definitively dismissed. How the government chooses to handle these assets could have ripple effects across the cryptocurrency market, especially given the substantial value of Bitcoin involved.