US Gov’t is planning to sell $1.18 Billion worth Bitcoin (BTC) connected to Silk Road – What will this do to the market?

  • The United States government has revealed its plans to sell off a staggering $1.18 billion worth of Bitcoin (BTC) which is connected to the now-defunct Silk Road. 
  • Justin Sun, the CEO of Tron has offered to purchase the Bitcoin (BTC) funds at a 10% discount for an over-the-counter deal. 

According to new court documents, the United States government is making plans to sell 41,500 Bitcoin. The Bitcoins are worth over $1.1 billion at the time of this report and are connected to Silk Road. Silk Road, the now-defunct online black market was founded by Ross Ulbricht. Ulbricht has since been sentenced to life in prison without the possibility of parole.

Back in 2020, the U.S. Justice Department revealed that the U.S. government had seized some Bitcoins. The Bitcoins were connected to individual X and James Zhong, both of whom were connected to the Silk Road marketplace. On the 14th of March 2023, the U.S. government sold 9,861 Bitcoin (BTC), for a staggering $215 million. Excerpts of the court document read: 

With respect to the 51,351.89785803 Bitcoin forfeited in the Ulbricht case before Judge Schofield, the Government has begun liquidating (selling) it. On March 14, 2023, the Government sold 9,861.1707894 BTC (of the 51,351.89785803 BTC) for a total of $215,738,154.98. After $215,738.15 in transaction fees, the net proceeds to the Government were $215,522,416.83.

The filing noted that out of the forfeited Bitcoin in the Ulbricht case, 41,490.72 are still left. Said Bitcoins will be liquidated in four more batches, over the course of the year, the documents added. The document added.

The Government understands from IRS Criminal Investigation – Asset Recovery & Investigative Services that the second round of liquidation will not be sold prior to Zhong’s sentencing date.

Justin Sun, the CEO of Tron has offered to purchase the Bitcoins in connection to Silk Road, on a condition

Taking to Twitter, the CEO of Tron, Justin Sun has disclosed an interest in purchasing Bitcoin’s from Silk Road. Many have predicted that the sale could trigger the market to sink. However,  the Tron boss intends to reduce the bearish impact that the sale might have on the crypto market. As such, Justin Sun is proposing to purchase the Silk Road Bitcoins involved, under one condition. He wrote in a recent tweet.

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“US government has announced its intention to sell an additional 41,500 BTC this year. To minimize the potential impact on the market, I would like to offer to purchase these BTC at a 10% discount for an OTC deal.

While the community aniticapes getting a response from the U.S. government, market reactions to Justin Sun’s offer have been mixed. While some are in support of Sun’s move, others are calling it a bluff. Some key players have also insisted that the offer might have been made casually.


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About Author

Olivia Brooke has been writing about cryptocurrencies since 2018. She’s currently fascinated by NFTs, and she remains committed to learning and writing about the broader cryptocurrency industry.

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