The U.S. government is authorized to liquidate A total of 69,370 Bitcoins were seized from the now defunct Silk Road market.
The plaintiffs (Battle Born Investments Company, First 100, and 1st One Hundred Holdings) sought to suspend enforcement of the judgment in this case.
They argued that it was necessary to move forward with a separate lawsuit aimed at forcing the U.S. Department of Justice to reveal the identity of the unidentified hacker “Individual X” who helped confiscate Bitcoin. Stolen from the Silk Road by the US government.
The mysterious figure is said to have hacked Silk Road more than a decade ago and received blackmail from imprisoned founder Ross Ulbricht.
Battle Born Investments Company and other claimants wanted to disclose the person's identity under the Freedom of Information Act (FOIA).
However, the U.S. District Court for the Northern District of California ultimately ruled in the government's favor.
The ruling means the government can move forward with liquidating confiscated Bitcoin assets.
This possible selling pressure could make things even worse for Bitcoin bulls, who are currently struggling to regain momentum.
On Wednesday, Bitcoin price fell to an intraday low of $92,938. This cryptocurrency is currently trading at $94,312 on the Bitstamp exchange.
