Web Hosting Forum - Explore the Latest in Web Hosting Discussions

We are a community of individuals and businesses passionate about web hosting. Let's build, learn, and grow together.

Bitcoin U.S. Government Plans to Auction $4.4 Billion in Bitcoin Seized from Silk Road Operation

RickyWref

Novice
Member
The U.S. government is preparing to auction off approximately 69,370 Bitcoin seized from the notorious Silk Road marketplace, valued at around $4.4 billion. This significant move comes after the U.S. Supreme Court declined to hear an appeal from Battle Born Investments, a Nevada-based company that claimed ownership rights to the Bitcoin. The Supreme Court's decision upholds a prior ruling by a federal court, which found insufficient evidence to support Battle Born's claims, clearing the way for the government's sale.

The U.S. Marshals Service (USMS) is expected to oversee the auction, which is projected to be one of the most significant sales of seized Bitcoin in history. Recent activity indicates preparations are already underway, with substantial portions of the seized Bitcoin transferred to new wallets in anticipation of the sale. Historical precedents suggest that government auctions of large Bitcoin amounts often lead to downward pressure on market prices, raising concerns among investors

This auction occurs against the backdrop of ongoing political discussions about how the government should handle seized cryptocurrency, especially with the 2024 elections on the horizon. Former President Donald Trump, for example, has expressed intentions to create a strategic stockpile of Bitcoin if re-elected, contrasting the current administration's approach to liquidation.
 
  • Advertisement
  • How can the US government seize wallets with Bitcoin? Can they do it for any wallet? Even if it’s a cold wallet?
    This is a guess, but I'm assuming it was like holding BTC on an exchange. The government shut down the entity (Silk Road) and seized the BTC from them directly.
     
  • Advertisement
  • How can the US government seize wallets with Bitcoin? Can they do it for any wallet? Even if it’s a cold wallet?
    They absolutely cannot seize a self-custodial wallet. However, if your bitcoins are on an exchange like Coinbase, they can seize everything there.
     

    Advertisement

    Back
    Top