Jan 10, 2025
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US Government Required to Follow Strict Process Before Selling $6.5B Bitcoin

Asset Reality's Aidan Larkin discussed the recent US court approval to liquidate 69,000 BTC linked to Silk Road, valued at $6.5 billion. Key points include:

  • The approval is standard for civil forfeiture and does not imply immediate sale.
  • A process involving civil forfeiture hearings and government protocols must be followed before any sale.
  • Coinbase is expected to handle the on-chain transfer of the bitcoin prior to its sale.
  • Current selling pressure in the market is more likely due to speculation rather than anticipation of government sales.
  • A previous attempt by Battle Born Investments to block the sale was overruled in court.
  • The possibility of these bitcoins being used for a strategic reserve is low.
  • Future agreements may involve victim compensation and asset sharing with foreign governments.
  • Using bitcoin associated with crimes as a reserve asset is deemed unlikely.
  • Potential future strategies could include acquiring domestically mined bitcoin instead.

Expect bureaucratic complexities in the government’s handling of seized assets.