How might the Supreme Court’s decision shape Bitcoin market dynamics?
- Supreme Court’s refusal to review allows the U.S. to sell seized 69,370 Bitcoin. Trump proposes retaining Bitcoin as a strategic reserve if re-elected.
In a notable legal development, the U.S. Supreme Court has declined to review an appeal over the ownership of 69,370 Bitcoin [BTC], originally confiscated from the covert web Silk Road marketplace.
This decision stems from the Supreme Court’s denial to grant certiorari in the case brought by Battle Born Investments against the U.S. government.
Source: FreeSamourai/X
With the Supreme Court declining to hear the case, the U.S. government can now proceed with selling the seized assets, effectively concluding this legal battle.
What happened back in 2022?
For those unaware, in 2022, a California federal court dismissed claims from Battle Born Investments, which argued it had acquired rights to the seized Silk Road Bitcoin through a bankruptcy estate.
Battle Born claimed the debtor, Raymond Ngan, was “Individual X,” who allegedly stole billions in BTC from Silk Road.
Lacking compelling evidence, the court ruled against Battle Born—a decision later upheld by a San Francisco appeals court.
Thus, with the Supreme Court’s recent decision not to review the case, Battle Born’s legal avenues are now exhausted, allowing the government to liquidate the seized Bitcoin.
How will this impact Bitcoin?
Claims suggest that the U.S. government’s potential sale of seized BTC could significantly pressure the cryptocurrency market and impact Bitcoin’s price outlook.
And, as expected, this announcement itself had an immediate bearish impact on BTC’s price, which had been on an upward trend until recently.
As per CoinMarketCap, BTC is now trading at $62,651, marking a 1.36% decline over the past 24 hours.
Transfers made to date
Needless to say, up until now the U.S. government transferred significant BTC holdings seized from Silk Road to new wallets.
Between July and August, around $2.6 billion worth of Bitcoin was moved, typically indicating preparations for sale.
However, these transfers may not indicate imminent sales, as the U.S. Marshals Service has a custody deal with Coinbase Prime, suggesting the assets were moved for secure holding rather than liquidation.
Before any sale, regulatory protocols must still be followed by the U.S. Marshals or any agency involved.
Alternative uses for the seized Bitcoin
Some U.S. officials are proposing alternative uses for the seized Bitcoin.
For instance, Democratic Representative Ro Khanna suggested the government retain these assets as a strategic reserve.
Additionally, Republican presidential candidate Donald Trump also expressed interest in creating a BTC reserve if elected.
At a recent cryptocurrency conference in Nashville, Trump pledged to establish a “strategic Bitcoin stockpile” if he returns to office.
He asserted,
“I am announcing that if I am elected, it will be the policy of my administration, the United States of America, to keep 100% of all the Bitcoin the U.S. government currently holds or acquires into the future.”
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