Costa Rica Post

Pura Vida, Every Day
Wednesday, Feb 05, 2025

US Court Ruling Signals Potential Sale of Silk Road's Bitcoin Stash

Judicial decision allows DOJ to liquidate 69,370 bitcoins seized from notorious dark web marketplace, impacting market valuation.
In a landmark ruling, a US federal judge has authorized the Department of Justice (DOJ) to proceed with the sale of 69,370 bitcoins, valued at approximately $6.5 billion, confiscated from the infamous Silk Road website.

The site, often referred to as the 'eBay of drugs', was notorious for its use of bitcoin as a primary payment method for illegal transactions and was shut down by authorities in 2013.

The court's decision came after Battle Born Investments, a company attempting to challenge the sale, failed in its legal endeavors.

The firm's claim was related to a bankruptcy inheritance and a recent unsuccessful case involving the Freedom of Information Act (FOIA), seeking the disclosure of 'Individual X', the person originally responsible for handing over the bitcoins, reported DB News.

Battle Born's legal representation sharply criticized the ruling, citing it as 'another egregious example of DOJ's abuse in the civil asset forfeiture process,' alleging that the government employed 'procedural gimmicks to ensure the facts are never heard.'

Notably, the DOJ emphasized the significant volatility in bitcoin's price as a rationale for seeking court permission to offload these assets.

A DOJ spokesperson indicated that the government would proceed 'in accordance with the ruling in this case.'

The case's outcome holds particular interest amid discussions by Donald Trump, the US President-elect.

During his campaign, Trump had pledged to integrate bitcoin into the Federal Reserve, contrary to selling them, and hinted at ambitions to establish the US as a leading hub for cryptocurrency.

The US is believed to possess upwards of 200,000 bitcoins seized from similar initiatives like Silk Road.

Following the court's announcement, bitcoin's value experienced a downturn, falling between $95,000 to $93,800.

Silk Road and Trump’s Cryptocurrency Agenda
Silk Road was a controversial platform on the dark web facilitating the trade of illicit goods such as drugs and weapons and utilized bitcoin as a payment method.

Created by Ross William Ulbricht, the US Justice Department asserts that the site generated $1.2 billion in transactions from February 2011 until its closure in July 2013.

After its shutdown in October that year, bitcoin's value plummeted from $130 to $85.

In February 2015, Ulbricht was sentenced for money laundering, computer hacking, and drug trafficking conspiracy, and is serving a life sentence without parole.

His name resurfaced in 2024 when Trump announced during his pro-crypto campaign that he would commute Ulbricht’s sentence if elected.

At a rally, Trump declared, "Vote for me, and on the first day, I will commute Ross Ulbricht's sentence.

He’s done 11 years, let’s bring him home." Ulbricht expressed his gratitude to Trump via a post on X: "Last night, Donald Trump promised to commute my sentence on day one if reelected.

Thank you.

Thank you.

Thank you.

After 11 years in prison, it's hard to express how I feel.

It’s thanks to your unwavering support that I may have a second chance."

Trump’s campaign also included promises to incorporate bitcoin into the Federal Reserve and suggested the prospect of the US emerging as the 'crypto capital of the planet.' In mid-September, he made headlines for using bitcoin to buy a hamburger in a New York bar and even launched his own cryptocurrency platform.

After Trump's electoral win, bitcoin's price surged past $100,000, driven partly by Elon Musk's appointment to the newly established Department of Government Efficiency in Trump's administration, an agency abbreviated as DOGE—a nod to the dogecoin cryptocurrency.

As events unfold, the financial world keenly observes the implications of the DOJ's asset sale on the volatile cryptocurrency market.
Newsletter

Related Articles

0:00
0:00
Close
Trump Wins Again as Canada Agrees to Strengthen Border Security
Wall Street Journal Criticizes Trump's Trade War with Canada and Mexico
Trump Freezes Tariffs on Mexico After Agreement on Border Security
Apple Abandons AR Glasses Project Amid Struggles with Technology and Market Demand
U.S. Clinical Study Investigates Medication to Prolong Dogs' Lifespan
Trump: Canada Should Become the 51st U.S. State
Panama Rules Out Negotiations With US Over Control of Canal
The 'Chinese Pearl Harbor' on U.S. Tech: DeepSeek's Launch Triggers Market Collapse
Key Takeaways from the 2025 World Economic Forum in Davos
BlackRock CEO Larry Fink Suggests Bitcoin Could Reach $700,000 with Increased Institutional Investment
Five Billionaires on Track to Break One Trillion Dollar Wealth Barrier
Celebrity Responses to California Wildfires: Charity, Criticism, and Controversy
Saprissa Withdraws from Costa Rica's Women's Soccer First Division, Sparking Debate and Concern
Miguel Herrera: Farewell Video from Fox Sports as He Takes on Costa Rica National Team
Controversial Reappointment: Costa Rican President Rodrigo Chaves Names Marta Esquivel as Planning Minister
A Long Battle Ends in Tragedy for Shooting Victim in Costa Rica
Triple Homicide in Los Chiles: Couple and Five-Year-Old Girl Fatally Shot
Horacio Elizondo Resigns Irrevocably from Costa Rica's Football Federation Amidst Controversy
Costa Rican Digital Vehicle Licensing Bid Faces Another Setback
Convict Recaptured After Brief Escape from La Reforma Prison Complex
José Giacone: Confident in Saprissa's Enhanced Competitiveness This Season
Costa Rican President Rodrigo Chaves Considers Shift to Congressional Leadership
Pope Francis Praises Costa Rican Coffee as the World's Best
Former Honduran General Hospitalized Ahead of Protest Death Trial
Miguel 'Piojo' Herrera Appointed as Costa Rica's National Team Coach
Mónica Taylor Appointed as New President of Costa Rica's Social Security System
Davivienda Acquires Scotiabank's Operations in Latin America
California Wildfires Set to Become Costliest in U.S. History
US Court Ruling Signals Potential Sale of Silk Road's Bitcoin Stash
Leadership Changes Mark New Beginnings in Costa Rica's Public and Private Sectors
Meta Shifts Content Moderation Strategy: Context Notes to Replace Fact-Checking in the U.S.
Costa Rica Closes 2024 with Positive Inflation: Key Price Shifts Analyzed
Cessna Aircraft with Drug Traces Discovered on Clandestine Airstrip in Guanacaste
Tragic Incident as Man Found Dead After Being Swept Away by River in Limón
Elderly Man Severely Burned in Parrita House Fire Blocked by Motorcycle
Elusive Criminal ‘Diablo’ Continues to Evade Capture and Justice
Francisco Rodríguez Transfers from Herediano to Santos de Guápiles
Washington Ortega Embraces Pressure at Alajuelense
Alejandro Bran and Aarón Salazar Eager to Contribute to Alajuelense’s Success
Andrés Carevic Emphasizes Results Above Style at Cartaginés
Chaves Administration Faces Scrutiny Over Increased Emergency Decrees
Óscar Izquierdo Withdraws from PLN Presidential Primary Consideration
Sofía Guillén to Sue TikToker Over False Video Allegations
Mónica Taylor Hernández Appointed as New Head of Costa Rica's Social Security Fund
Understanding Human Metapneumovirus: Recent Outbreaks and WHO's Stance
Costa Rica Unveils Ambitious Mental Health Strategy for the Next Decade
Key Dates Announced for University Admissions at UCR and UNA
Costa Rican White-Faced Monkeys Face Climate Change Impacts
Davivienda's Strategic Expansion: Understanding the Legacy of Grupo Bolívar and the Cortés Family
Nvidia Surpasses Moore's Law: Driving Down AI Costs
×