Selling 69,000 Bitcoins? How Will the Silk Road’s Bitcoin Sale Impact the Market?
Just ten days after the U.S. government once again committed to providing $6 billion in military aid 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 relation 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 Bitcoin's historically influential development milestones: Silk Road
In October 2013, a young man named Ross Ulbricht was arrested in a San Francisco library, known by his alias "Dread Pirate Roberts" (DPR), signaling the end of the once-thriving drug and weapon trading website known as the "Silk Road." In 2015, Ross Ulbricht was sentenced to life in prison.
This darknet born in 2011 initially operated as an "eBay-like model" offering various illicit goods and services, such as drugs, fake IDs, hacking tools, etc. Due to the anonymity of the dark web and Bitcoin as the primary payment method, the Silk Road quickly grew and became 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 case, approximately 170,000 Bitcoins were seized from various locations such as the platform's servers and Ross Ulbricht's personal digital wallets, marking one of the largest Bitcoin enforcement seizures in history at that time.
When arresting Ross Ulbricht, law enforcement gained access to relevant encrypted wallets through the seized laptop and server information on-site. Since Bitcoin transactions require private keys for transfer, once law enforcement has 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 to sell the Bitcoin seized in the "Silk Road" case, and the timeline and impact on the market price are worth revisiting.
In June 2014, the U.S. government held its first public auction of the Bitcoin seized in the Silk Road investigation. The U.S. Marshals Service auctioned off about 30,000 bitcoins. Bidders included many institutional and individual investors, with prominent investor Tim Draper winning bids multiple times. 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 "cascade" event. The active participation of institutional investors in the auction process reinforced Bitcoin's "legitimacy" attribute to some extent.
In December 2014, the second round of auctions involved 50,000 bitcoins, nearly double the scale of the first auction. Market expectations were similarly pessimistic. However, after the dust settled from the auction, Bitcoin continued to fluctuate in the $300 to $400 range without experiencing a continuous plunge.
In March 2015, another 50,000 bitcoins were auctioned off, by which time Bitcoin had already rebounded from its previous low. The prior market panic further subsided, and the price stabilized quickly in the $280 to $300 range after minor fluctuations.
In November 2015, the U.S. government's auctions of hundreds of thousands of bitcoins accumulated by the end of the year did not trigger significant market turmoil. On the contrary, due to continuous bidding by buyers, these auctions were interpreted as a symbol of Bitcoin gradually gaining more "legitimate investment" status.
Until today, the U.S. Department of Justice has been authorized to liquidate the remaining 69,370 BTC (valued at about $6.5 billion) seized in the Silk Road case, and the wallet address associated with the Silk Road, "bc1qa5," has remained dormant for over 4 years.
Based on past sales history, Bitcoin's price may experience temporary price panic, but in the long term, since the U.S. government has often conducted OTC auctions in the past, it may not sell at market price, and the negative impact on Bitcoin's price is unlikely to last long.
Trump's Pardon and Bitcoin Reserve Commitment May Postpone Sales?
In May 2024, during Trump's presidential election campaign, at the Libertarian National Convention held in Washington, D.C., he pledged that if re-elected as president, he would commute the sentence of Silk Road founder Ross Ulbricht on the first day. On July 28, at the Bitcoin 2024 conference, Trump stated that he once again pledged that after being elected president, he would commute the sentence of Silk Road founder Ross Ulbricht.
On November 14, Ross William Ulbricht made his first post on the X platform after the U.S. election, stating, "I sincerely thank all those 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 trading volume of $136,310 and a 22% probability of selling Bitcoin before Trump's inauguration.
Given Trump's previous promise to commute the sentence of the 'Silk Road' founder Ross and his reiterated commitment to make the U.S. the world's cryptocurrency capital, embracing cryptocurrency.
Therefore, most people believe that Ross may be commuted or even pardoned. Likewise, in the PolyMarket topic "Who will President Trump pardon within 100 days of taking office?" the probability of Ross being pardoned is very high at 73% as of now.
Due to Trump's Bitcoin reserve commitment, if the U.S. government does not sell before Trump's official inauguration on January 20, there is speculation in the market that the seized Bitcoin from the Silk Road case may not be sold.
How Much Bitcoin Does the U.S. Government Own?
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.
You may also like
Galaxy Deep Research Report: How Hyperliquid's HIP-4 Upgrade Changes the Landscape of Prediction Markets?
ZachXBT: Humanity private key leak and abnormal surge in H token should be viewed separately
On June 9, according to related disclosures, on-chain investigator ZachXBT posted an update on Humanity’s roughly $31 million security incident, saying that after further analyzing fund flows, he currently tends to believe the project team was not involved in an “inside job” or a self-staged attack. According to him, the official explanation about the private key leak was broadly accurate, but before the token unlock, the price of H had been artificially pushed higher, and the hacker later took advantage of that market environment; therefore, the private key leak and the earlier abnormal price pumping should be regarded as two separate and independent events. This reframing has shifted the market’s understanding of the nature of the incident. Earlier discussion around Humanity had focused on whether the team directly participated in the attack or used the security incident to cover up internal operations. ZachXBT’s latest remarks shift the focus from “whether it was self-theft” to “whether there were pre-unlock market structure issues.” He also questioned whether the team may have.
Morning Report | OpenAI has submitted an S-1 registration statement draft to the U.S. SEC; Morpho completes $175 million financing
Morning Report | BitMine increased its holdings by 126,971 ETH last week; trader Eugene announced his exit from the crypto market
Wang Chuan: How can one not feel anxious after the neighbor Old Wang made thirty times profit by investing in storage stocks? (Seven) - A quarter-century cycle
Cryptocurrency CEXs are flocking to sell US stocks, and traditional brokerages are facing an "uninvited guest."
$75 billion in foreign capital has fled, and South Korean retail investors have absorbed it all using leverage
Japan’s Three Megabanks Plan Joint Stablecoin Issuance in Fiscal 2026
MUFG, SMBC, and Mizuho reportedly plan to jointly issue fiat-pegged stablecoins in fiscal 2026, signaling Japan’s growing push into bank-led digital payment infrastructure.
Humanity Discloses H Token Dual-Chain Attack Details, With Losses on Ethereum and BSC Exceeding $36 Million
Humanity said the H token attack across Ethereum and BSC caused more than $36 million in losses after leaked ProxyAdmin keys enabled malicious contract upgrades and token minting.
White House Discusses CLARITY Act With Law Enforcement Ahead of Senate Vote
The White House discussed the CLARITY Act with law enforcement ahead of a Senate vote, focusing on illicit finance risks and developer protections.
Bitcoin Trading Guide 2026: Strategies for Experienced Traders
What Is XAUT and PAXG? Why Tokenized Gold Is Booming in 2026
Will the SpaceX IPO Hurt Bitcoin? Here's What Traders Are Watching
Foreign selling in the South Korean stock market accelerates, with cumulative net sales reportedly reaching $75 billion this year
On June 9, The Kobeissi Letter, citing Goldman Sachs data, reported that global investors are selling South Korean stocks at an unusually rapid pace. In the latest trading session, foreign investors sold about $801 million worth of Kospi constituent stocks again; total foreign outflows last week reached about $10 billion, and the market has been in net foreign selling on nearly every trading day over the past month. According to the data cited in the report, foreign investors have sold about $75 billion worth of South Korean stocks so far this year. Meanwhile, South Korean retail and institutional investors together recorded roughly $69 billion in net buying over the same period, suggesting that the market’s main buying support has come from domestic capital rather than returning overseas funds. The information currently disclosed still mainly comes from The Kobeissi Letter’s retelling and Goldman Sachs data summaries, while public details on the statistical period and the specific definition of “selling” remain relatively limited.
Fortune Warns of Strategy’s Financing Structure Risks as Bitcoin Premium Narrows
Fortune warned that Strategy’s Bitcoin treasury model faces growing financing risks as MSTR’s net asset premium narrows and preferred stock dividend pressure increases.
Ferrari Challenge Le Mans: Carl Moon to Dominate in WEEX Livery
Sahara AI Responds to SAHARA’s Sharp Drop: No Contract or Product Security Issues Found, Internal Investigation Underway
Sahara AI responded to SAHARA’s 60% price drop, saying no token contract or product security issues have been found and an internal investigation is underway.
WEEX Deposit/Withdrawal Dynamic Island: Your Asset Status, Always in Sight
Galaxy Deep Research Report: How Hyperliquid's HIP-4 Upgrade Changes the Landscape of Prediction Markets?
ZachXBT: Humanity private key leak and abnormal surge in H token should be viewed separately
On June 9, according to related disclosures, on-chain investigator ZachXBT posted an update on Humanity’s roughly $31 million security incident, saying that after further analyzing fund flows, he currently tends to believe the project team was not involved in an “inside job” or a self-staged attack. According to him, the official explanation about the private key leak was broadly accurate, but before the token unlock, the price of H had been artificially pushed higher, and the hacker later took advantage of that market environment; therefore, the private key leak and the earlier abnormal price pumping should be regarded as two separate and independent events. This reframing has shifted the market’s understanding of the nature of the incident. Earlier discussion around Humanity had focused on whether the team directly participated in the attack or used the security incident to cover up internal operations. ZachXBT’s latest remarks shift the focus from “whether it was self-theft” to “whether there were pre-unlock market structure issues.” He also questioned whether the team may have.
Morning Report | OpenAI has submitted an S-1 registration statement draft to the U.S. SEC; Morpho completes $175 million financing
Morning Report | BitMine increased its holdings by 126,971 ETH last week; trader Eugene announced his exit from the crypto market
Wang Chuan: How can one not feel anxious after the neighbor Old Wang made thirty times profit by investing in storage stocks? (Seven) - A quarter-century cycle
Cryptocurrency CEXs are flocking to sell US stocks, and traditional brokerages are facing an "uninvited guest."
