The DOJ cited concerns over Bitcoin's volatility as the primary reason for pushing for a quick sale.
A federal judge approved on December 30 the selling of about 69,370 Bitcoin, estimated to be around $6.5 billion in value, that was seized by the U.S. Department of Justice (DOJ) from the darknet’s notorious Silk Road marketplace. It put an end to the long saga in court where claims over who actually owned those cryptocurrencies were presented.
The Bitcoin was recovered from the infamous dark web marketplace called Silk Road. It was known for several illegal activities including drug trafficking, and hacking services. The assets remain at the core of a highly publicized and litigated matter.
Battle Born Investments sought an interest in claiming the Bitcoin in a bankruptcy estate. They couldn’t delay the sale and uncover the identification of the initial person who surrendered his Bitcoin.
The DOJ cited concerns over Bitcoin’s volatility as the primary reason for pushing for a quick sale. They argue that holding onto the assets any longer could lead to a significant loss due to market fluctuations. This legal victory comes after the U.S. Supreme Court decided not to hear Battle Born’s appeal last October, which cleared the way for the sale.
This move to sell Bitcoin has resulted in an immediate impact on the market. Immediately after the announcement, Bitcoin had dropped from about $95,000 to $93,800. It is now trading at about $94,300, showing a slight dip of nearly 3% in the last 24 hours.
Nayib Bukele, the president of El Salvador, showed optimism about this stating, “Maybe we’ll all get the chance to buy Bitcoin at a discount.”
Once the liquidation process is initiated, it is expected to be one of the largest crypto asset sales in history, managed by the U.S. Marshals Service. The sale will probably raise questions about its effect on the market, especially as Bitcoin’s value has surged significantly since Silk Road was shut down in 2013.