US Supreme Court Declines Appeal on $4.4B Silk Road Bitcoin

The US Supreme Court has declined to review the case involving claims over $4.4 billion Bitcoin seized from the dark net marketplace Silk Road.

Battle Born Investments claims it purchased rights to $4.38 billion Silk Road bitcoin.The firm appealed to the Supreme Court to review the case after failing to prove its claims before a district court in 2022 and the court of appeals in 2023.

The top court's refusal to reviewthe case gave the government clearance to sell the stash of Bitcoin tokens.

Court Declines Ownership Claims of $4.4 Billion Silk Road BTC

Battle Born Investments reportedly acquired bankruptcy claims after the dark web marketplace Silk Road shut down in 2013.

The firm claims ownership of the 69,370 BTC worth $4.4 billion seized from individuals after the platform's closure. Meanwhile, the Bitcoins have been in the custody of the US government and are awaiting court clearance to be sold.

In 2022, Battle Born sued the United States government in the US District Court of the Northern District of California, asserting ownership of the assets. The court dismissed the case, citing a lack of valid claims.

Later, in 2023, Battle Born Investment appealed the District Court's ruling in the US Court of Appeals of the Ninth Circuit. However, the appellate court judge dismissed the case, saying the company's claim to the seized Bitcoin was invalid, meaning the US District Court order still stands.

After failing to convince the appeal court in 2023 to grant them ownership of the seized Bitcoin, the company went to the Supreme Court in March 2024.

Battle Born requested that the Supreme Court review its claim, stating it is only trying to defend its property right as the purchaser of the bankruptcy assets. However, the company has met another dead end since its case recently appeared on the Supreme Court's list of denied cases.

Will the US Government Offload More Bitcoin?

Notably, of the over 7,000 cases brought for review yearly, the Supreme Court only accepts 100 to 150. Its decision to toss Battle Born's case allows the US civil forfeiture action to take full effect on the seized assets.

Meanwhile, the government must still follow some procedures and legal reviews before selling Bitcoins. However, the Supreme Court's dismissal allows the US Marshals Services to auction additional bitcoins.

In July, the US government moved approximately $2 billion in Bitcoin linked to the Silk Road seized assets. This sale came two days after former President Trump advised the government never to sell its Bitcoin holdings during his speech at the Bitcoin 2024 conference.

What the US government plans to do with the seized Silk Road bitcoins remains unclear. However, Republican party flag bearer Donald Trump has pledged to establish what he called a strategic Bitcoin stockpile" if he wins the upcoming election.

This proposal will see the US acquiring more Bitcoin into the treasury instead of selling off existing holdings.

For context, Silk Road was a notorious dark web market created by Ross Ulbricht in 2011. Ulbricht was arrested and convicted following a crackdown action on the platform in 2013.

He is now serving a life sentence for multiple counts of illegal drug peddling and conspiracy to commit money laundering, among other charges. He has already spent over a decade in prison.

One year for each finger on both hands.

Today ends a full decade in prison.

I sometimes fear I'll spend the rest of my life behind concrete walls and locked doors. But I have no one else to blame. It's my poor choices that led me here.

All I can do now is pray for mercy.

- Ross Ulbricht (@RealRossU) October 1, 2023

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