KEY POINTS
- Battle Born Investments had claimed that it purchased rights to the seized $BTC
- Last year, an appeals court reaffirmed a district court ruling that struck down Battle Born's claims
- Some crypto users fear that if the government dumps its $BTC stash, prices may be affected negatively
- Others are looking forward to a possible dump, seeing it as a chance to buy more Bitcoin
The U.S. government has cleared a hurdle in relation to 69,370 Bitcoin seized from darknet marketplace Silk Road after the Supreme Court refused to hear a case brought by Battle Born Investments that could have handed over the massive BTC stash worth around $4.38 billion.
Battle Born Investments filed a request for review with the Supreme Court, claiming that it purchased rights to the seized assets through a bankruptcy estate. With the court's denial to hear the case, talks are emerging about how Bitcoin prices will move should the U.S. government dump all of its BTC as Germany did.
Battle Born's Difficult Journey to Claiming Silk Road $BTC
In 2022, a district court struck down Battle Born's claims to the seized Bitcoins. The company claimed it was "entitled to, unencumbered right, title and ownership" of the behemoth Bitcoin stash.
Last year, an appeals court reaffirmed the district court's decision. "The district court correctly struck the Battle Born parties' claims for lack of standing," it said.
"Reviewing the record de novo, we conclude that the Battle Born parties failed to carry their burden to establish some evidence, beyond a mere assertion, of ownership of the Defendant Property, from which a reasonable and fair-minded jury could find that they have standing," the appeals court reiterated.
What Will the Government Do Next?
While it is unclear what the U.S. government plans for the seized digital currencies, in April, a wallet linked by leading blockchain analytics firm Arkham Intelligence to the U.S. government moved 30,174 BTC (worth $2 billion at the time) to a Coinbase deposit address.
At the time, some financial industry experts saw the move as having a positive effect on BTC prices, since the Bitcoins were expected to be returned to the crypto market.
Based on how crypto investors reacted to the German government's dump of its $3 billion Bitcoins seized from a movie piracy site, it appears the crypto market may not have had the same reaction as back in April.
Bearish Views Emerge on X
A wave of bearish talk is emerging on X, with some suggesting a dump from the U.S. government may have a negative effect on crypto prices.
One user said it appears that whenever Bitcoin prices begin to pick up, "the gov comes up with some bearish news to put a damper on it." Another said the government under President Joe Biden has become desperate "to stop Bitcoin rally before [the] elections]."
Seems every time Bitcoin starts to rally, the gov comes up with some bearish news to put a damper on it. This strategy will only work for so long. Make sure you are ready…
— Ro₿ Dalton (@TheDrago663) October 8, 2024
Just Dump It: Bitcoin Owners
For other BTC holders, a government dump would be a great opportunity to stack up on more Bitcoins. Some urged the Bitcoin community to buy the dump from the government and "never allow them back."
If I was you I'd buy with this kind of announcement!! Are you kidding me lmaoooo.... #BULLRUN INITIATED! 👀
— Fishstix🎣 (@Fishstix_420) October 8, 2024
As of early Wednesday, BTC is trading at around $62,300. It had a positive run last month, hitting $66,000 and surviving two bloodbaths in August.
