The U.S. government has been allowed to liquidate a total of 69,370 Bitcoins that were seized from the now-defunct Silk Road marketplace.
The claimants (Battle Born Investments Company, First 100, and 1st One Hundred Holdings) were attempting to pause enforcement of the judgment in this case.
They argued that it was necessary due to pursuing another lawsuit that was seeking to compel the U.S. Department of Justice that was meant to force the U.S. Department of Justice to reveal the identity of "Individual X," the unknown hacker who helped to forfeit the Bitcoins stolen from Silk Road to the U.S. government.
The mysterious figure hacked Silk Road more than a decade ago and was allegedly threatened by jailed founder Ross Ulbricht.
Battle Born Investments Company and other claimants wanted to disclose the identity of that figure by relying on the Freedom of Information Act (FOIA).
However, the United States District Court for the Northern District of California ended up ruling in favor of the government.
The ruling means that the government can move forward with liquidating the confiscated Bitcoin fortune.
This possible selling pressure is likely to make things much worse for Bitcoin bulls who are currently struggling to revive their momentum.
On Wednesday, the Bitcoin price plunged to an intraday low of $92,938. The cryptocurrency is currently changing hands at $94,312 on the Bitstamp exchange.
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Arman Shirinyan
Dan Burgin
Vladislav Sopov