Bitrabo Editorial
The United States Supreme Court has chosen not to review an appeal from Battle Born Investments regarding the seizure of 69,370 bitcoins linked to the Silk Road darknet site. This ruling, recorded on October 7 under “CERTIORARI DENIED,” supports the government’s ability to seize and possibly sell these Bitcoins, totaling around $4.4 billion in value.
US Government’s Claim to the Seized Bitcoins Strengthened
The situation involves a civil forfeiture initiated by the US government after Silk Road’s closure. Battle Born Investments claimed ownership, asserting that they had purchased these Bitcoins in March 2018 as part of an acquisition from the bankruptcy estate of Raymond Ngan. They tied the original ownership to someone known as “Individual X,” who allegedly stole the bitcoins from Silk Road and had connections to Ngan.
US officials countered Battle Born’s assertions, arguing that the Bitcoins were forfeitable because of their illicit ties to Silk Road. In 2022, the US District Court for Northern California sided with the government, stating the Bitcoins should be disposed of following legal protocols.
Battle Born appealed, but on August 18, 2023, the Ninth Circuit Court upheld the initial ruling, noting that Battle Born “did not have standing to challenge the forfeiture,” with their claims being speculative and lacking solid proof of ownership.
Afterward, Battle Born requested a full court review, which was declined on December 12, 2023. They then appealed to the Supreme Court on April 25, 2024, arguing that previous court interpretations regarding their standing and ownership were incorrect.
With the Supreme Court’s decision not to hear the case, the lower courts’ rulings are maintained. This outcome signifies that Battle Born Investments does not have the right to dispute the Bitcoins’ forfeiture, transitioning them into a forfeitable and sellable status, thus enabling the US government to manage the seized assets legally.
The government’s stance, supported by the Department of Justice’s submissions, stated that “unfounded claims of ownership without adequate proof do not suffice for civil forfeiture standing.” The courts acknowledged this, underscoring the necessity for direct evidence relating to Battle Born’s claims.
The prospective sale of the 69,370 BTC could greatly impact the Bitcoin market. Currently valued at about $4.4 billion, such a sale could shift market dynamics and affect investor attitudes, as past announcements of government Bitcoin sales have caused considerable market fluctuations.
Additionally, Donald Trump had promised to allocate all seized Bitcoins into a “strategic national stockpile.” Subsequently, on July 29, the Biden-Harris administration moved 29,800 Bitcoins to an undisclosed wallet.
As of the latest update, Bitcoin is trading at $62,356.