There were two sets of Bitcoins. The bitcoins found on the SR1 server, which the Ulbricht defense team decided to not claim any interest in (which in retrospect seems like a serious legal blunder per the other comment), and the bitcoins found on Ulbricht&#x27;s laptop in SF and his backup devices etc. The SR1 server bitcoins could be sold off without any trouble, but Ulbricht&#x27;s bitcoins were in legal jeopardy as they might have been the proceeds of drug trafficking and not legitimate Bitcoin trading activities. As it happens, Ulbricht&#x27;s bitcoins <i>also</i> got sold off as part of a mutual agreement between Ulbricht and the government to insulate them against the possibility of Bitcoin going to zero during the lengthy legal proceedings. (Neither party would be happy if terrible things happened to Bitcoin and it slowly went to zero, but they couldn&#x27;t sell or do anything about it because the bitcoins were frozen.)