Just ten days after the U.S. government once again committed to providing $6 billion worth of military security assistance to Ukraine, the U.S. Department of Justice is preparing to initiate the liquidation of a substantial Bitcoin asset.

On January 9, an official confirmed to DB News that the Department of Justice has been authorized to dispose of 69,370 bitcoins seized in connection to the infamous Silk Road case. The current market value of this asset is approximately $6.5 billion.

It is reported that the Department of Justice has requested permission to sell these assets citing Bitcoin price volatility. When asked about the next steps, a Department of Justice spokesperson stated, "The government will take the next steps based on the judgment in this case."

Following the news, Bitcoin plunged over 2.5% in 24 hours, with the price standing at $94,400 at the time of writing.

One of the Most Influential Milestones in Bitcoin History: Silk Road

In October 2013, a young man named Ross Ulbricht was arrested in a San Francisco library, using the alias "Dread Pirate Roberts" (DPR). This marked the end of the notorious dark web drug and weapon trading site known as the Silk Road. In 2015, Ross Ulbricht was sentenced to life in prison.

This dark web, born in 2011, initially operated as an "eBay-like model" providing various illegal goods and services on a trading platform, such as drugs, counterfeit documents, and hacking tools. Due to the anonymity of the dark web and Bitcoin as the primary payment method, the Silk Road quickly expanded and was considered one of the most famous and largest illegal markets on the dark web.

From 2012 to 2013, U.S. law enforcement agencies such as the FBI and the DEA began closely monitoring the Silk Road, deploying undercover agents. Due to the platform's frequent transactions, large scale, and involvement in illegal activities across multiple countries, U.S. law enforcement agencies identified it as a key target for crackdown.

During the FBI's investigation of the Silk Road, approximately 170,000 bitcoins were seized from various locations, including the platform's servers and Ross Ulbricht's personal digital wallets, making it one of the largest Bitcoin law enforcement seizures at that time.

When arresting Ross Ulbricht, law enforcement officers obtained access to relevant encrypted wallets through the laptop and server information seized at the scene. Since Bitcoin transactions require private keys to facilitate transfers, once law enforcement gains valid private keys, they can move the corresponding Bitcoin from the suspect's address to an official "custodial" wallet.

The U.S. Government Is Not Selling Bitcoin for the First Time

Since 2014, the U.S. government has held multiple auctions selling Bitcoin seized in the Silk Road case, and the timeline of these events and their impact on the market price is worth revisiting.

In June 2014, the U.S. government held its first public auction of Bitcoin confiscated in the Silk Road case. The U.S. Marshals Service auctioned off approximately 30,000 bitcoins. Bidders included various investment institutions and individuals, with prominent investor Tim Draper winning multiple bids. In subsequent auctions, the government sold the remaining bitcoins in multiple batches.

After the auction, the price of Bitcoin remained stable around $600 and did not experience a "dump." The auction process demonstrated active bidding from institutional investors, enhancing Bitcoin's "legitimacy" in the eyes of many.

In December 2014, a second auction was held for 50,000 bitcoins, nearly double the scale of the first auction. Market expectations were again somewhat pessimistic. However, once the auction concluded, Bitcoin continued to fluctuate in the $300 to $400 range without a significant drop.

In March 2015, another 50,000 bitcoins were auctioned off when Bitcoin had already started to recover from its previous low. The market's prior panic subsided further, and the price stabilized quickly in the $280 to $300 range after minor fluctuations.

In November 2015, the U.S. government's cumulative auctions of hundreds of thousands of bitcoins towards the year's end did not trigger major market turmoil. On the contrary, as there were continuous buyers eager to bid, these auctions were seen as a symbol of Bitcoin gradually gaining more "legitimate investment" status.

Up to this day, the U.S. Department of Justice has been granted approval to liquidate the remaining 69,370 BTC (valued at around $6.5 billion) seized in the Silk Road case. The wallet address associated with the Silk Road, "bc1qa5," has remained dormant for over four years.

Based on past sale history, Bitcoin's price may experience brief price panic. However, in the long run, since the U.S. government has often conducted OTC auctions in the past, and may not sell at market prices, the negative impact on Bitcoin's price is unlikely to last too long.

Trump Pardon and Bitcoin Reserve Commitment May Delay Sale?

In May 2024, during his presidential re-election campaign, Donald Trump pledged at the Libertarian National Convention in Washington, D.C. that if re-elected, he would commute the sentence of Silk Road's founder, Ross Ulbricht, on his first day in office. On July 28, at the Bitcoin 2024 conference, Trump reiterated his commitment to commute the sentence of Silk Road's founder, Ross Ulbricht, once elected president.

On November 14, Ross William Ulbricht made his first post on the X platform after the U.S. election, stating, "I express my heartfelt thanks to all who voted for President Trump. I believe he will fulfill his promise and give me a second chance. After more than 11 years in the dark, I finally see the dawn of freedom at the end of the tunnel. Thank you very much."

As of now, the prediction market on PolyMarket regarding "Will the U.S. government sell Bitcoin before Trump's inauguration?" has become a popular bet, with a betting volume of $136,310, and the probability of selling Bitcoin before Trump's inauguration is 22%.

Given Trump's previous promise to commute the sentence of the 'Silk Road' founder Ross and his repeated commitment to making the U.S. the world's cryptocurrency capital, embracing cryptocurrency.

Therefore, most people believe that Ross may be commuted or even pardoned. Similarly, in the PolyMarket prediction market on "Who will Trump pardon within 100 days of taking office?" the likelihood of Ross being pardoned is very high, with the current probability of pardon being 73%.

Due to Trump's commitment to his Bitcoin reserve pledge, if the U.S. government does not sell before Trump's official inauguration on January 20, the market speculates that the seized Bitcoin from the Silk Road case may not be sold off.

How Much Bitcoin Does the U.S. Government Have?

According to Bitcoin Treasuries data, the U.S. government holds 207,189 bitcoins, accounting for 0.987%. Based on the current Bitcoin price, the total value of Bitcoin held by the U.S. government is $19,544,018,200.

欢迎加入律动 BlockBeats 官方社群：

Telegram 订阅群：https://t.me/theblockbeats

Telegram 交流群：https://t.me/BlockBeats_App

Twitter 官方账号：https://twitter.com/BlockBeatsAsia