The United States Supreme Court has refused to hear an appeal from Battle Born Investments regarding the confiscation of 69,370 bitcoins originally linked to the Silk Road darknet marketplace. The decision, listed under “CERTIORARI GRANTED” in the publication of the Supreme Court of October 7, effectively allows the US government to seize and be able to sell Bitcoins, which currently have an estimated value of $ 4.4 billion.
US Government Retains Right to Seized Bitcoins
The case is about the confiscation action initiated by the US government following the closure of the Silk Road. Battle Born Investments claimed legal ownership of Bitcoins, asserting that in March 2018, it entered into an agreement to purchase assets—including Bitcoins in the “1HQ3” fund—from Raymond Ngan’s Chapter 7 bankruptcy. They suspect that the goods were tied to a person known as “Individual X,” who had stolen bitcoins from the Silk Road and was associated with Ngan.
However, US authorities disputed Battle Born’s claims, maintaining that the Bitcoins were subject to confiscation due to their connection to illegal activities on the Silk Road. In 2022, the US District Court for the Northern District of California ruled in favor of the government, ordering it to “dispose of the property seized by the defendant in accordance with the law.”
Battle Born Investments appealed the decision, but on August 18, 2023, the Ninth Circuit Court of Appeals affirmed the lower court’s decision. The appeals court ruled that Battle Born “did not have standing to challenge the forfeiture,” saying their claims were speculative and lacked substantial evidence to establish direct ownership of the Bitcoins.
After the appellate court’s decision, Battle Born sought a retrial, which was denied on December 12, 2023. Persisting in their legal efforts, they applied for a writ of certiorari to the Supreme Court on April 25, 2024, arguing that. lower courts had erred in interpreting their standing and claims of ownership.
The Supreme Court’s refusal to review the case effectively upholds the lower courts’ decisions. By denying the petition, the Supreme Court confirms that Battle Born Investments does not have the necessary standing to challenge the seizure of the Bitcoins. This result moves 69,370 BTC from seizure status to forfeitable and salable property, giving the US government the authority to “dispose of property seized by the defendant pursuant to law.”
The government’s position, supported by filings from the United States Department of Justice, emphasized that “mere claims of ownership, without substantial evidence, are insufficient to establish standing in civil forfeiture cases.” Courts agreed, highlighting the need for physical evidence tying the claimed property directly to Battle Born.
A possible sale of 69,370 BTC by the US government could have a major impact on the market. Valued at around $4.4 billion at current rates, the liquidation of such a large amount of Bitcoin would have an impact on market volatility and investor sentiment. In the past, US government sales news has stirred the market a lot.
Notably, Donald Trump vowed to transfer all Bitcoin holdings to a “strategic national stockpile.” After this, on July 29, the Biden-Harris administration transferred 29,800 Bitcoin to an unknown wallet address.
At press time, BTC traded at $62,356.
The featured image was created with DALL.E, a chart from TradingView.com
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