The U.S. Department of Justice (DOJ) plans to sell 69,370 Bitcoin (BTC), valued at over $6.5 billion, seized from the Silk Road darknet marketplace.
This decision comes after a court ruling on December 30, which concluded a lengthy legal dispute with Battle Born Investments, a party claiming ownership of the Bitcoin through a bankruptcy estate.
The US Govt has been given the greenlight to liquidate 69,000 BTC ($6.5B) from Silk Road, an official confirmed to DB News today
Interesting situation less than 2 weeks away from the new admin who vowed to not sell https://t.co/HqD1KnhJK3 pic.twitter.com/xn8ATSEL7H
— db (@tier10k) January 9, 2025
Battle Born’s case fell apart when the group did not disclose the identity of the person who surrendered the Bitcoin. As a result, the court granted the DOJ full ownership of the cryptocurrency, allowing the agency to move forward with its plan to liquidate the assets.
The DOJ has emphasized the urgency of the sale due to Bitcoin’s price volatility, a factor the court acknowledged in its ruling. However, this news has sparked concerns within the crypto community about potential market disruption, with fears that such a massive sale could lead to a sharp decline in Bitcoin’s value.
Despite these apprehensions, CryptoQuant CEO Ki Young Ju offered a reassuring perspective. He pointed out that last year’s crypto market handled inflows of $379 billion, demonstrating its resilience to absorb large transactions. Ju argued that the DOJ’s $6.5 billion Bitcoin sale could likely be executed within a week without causing significant market turmoil.
El Salvador’s President Nayib Bukele suggested the sale could present an opportunity for investors to acquire Bitcoin at lower prices, implying the move might trigger further market volatility.
Meanwhile, BitMEX is under scrutiny from the U.S. DOJ for alleged violations of the Bank Secrecy Act. U.S. Attorney Damian Williams stated that BitMEX admitted to offering crypto trading services without a proper Anti-Money Laundering program. BitMEX referred to the claims as “old news” and highlighted a 2022 settlement where founders Arthur Hayes and Benjamin Delo pleaded guilty to failing to maintain an AML program, each paying $10 million in fines.
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