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Recently, the U.S. government has taken steps to sell a significant amount of Bitcoin (BTC) valued at approximately $130 million. This cryptocurrency was previously confiscated in connection with the notorious Silk Road darknet marketplace.
Disposition Plans and Notice Details
According to official statements, the government intends to auction off two batches of Bitcoin as directed by the U.S. Attorney General. These lots comprise 2,874.9 BTC, valued at $129 million, and 58.7 BTC, valued at $3.3 million. The proposed sale aims to liquidate these assets efficiently.
Individuals, excluding defendants, have been given 60 days starting from January 10 to assert their interest in the forfeited Bitcoin through ancillary petitions.
According to Crypto News, there's provision for petitions seeking remission or mitigation, potentially pardoning portions or all of the seized cryptocurrency.
Bitcoin Origins and Seizure Circumstances
The BTC in question previously belonged to two individuals, primarily Ryan Farace, a Maryland resident involved in a money laundering conspiracy linked to the sale of Xanax on the dark web. Additionally, some of the seized cryptocurrency stemmed from Sean Bridges, a former U.S. Secret Service Special Agent implicated in Silk Road investigations and subsequent Bitcoin theft.
These seizures occurred on February 10, 2021, in Memphis, Tennessee, and May 11, 2021, in Arlington, Virginia. The District Court in Maryland finalized the condemnation and forfeiture of the Bitcoin to the U.S. government on January 8, 2024.
Implications and Historical Context
According to Crypto Slate, while these funds represent a substantial sum, they constitute only a fraction of the overall assets seized by the U.S. government in connection with Silk Road-related activities. Over the years, authorities confiscated billions of dollars worth of Bitcoin, including notable seizures from Silk Road founder Ross Ulbricht in 2013 and from individuals like James Zhong in 2022.
As of December 2023, the U.S. government reportedly held around $9 billion worth of Bitcoin, reflecting the culmination of various forfeiture efforts, though not solely tied to Silk Road investigations.
Photo: Samuel Branch/Unsplash
