Key takeaways:
- A US appeals court has completed the legal procedure to formally seize 69,370 Bitcoin and other crypto from the Silk Road.
- In addition to Bitcoin, the confiscated Bitcoin assets also included Bitcoin gold (BTG), Bitcoin SV (BSV), and Bitcoin Cash (BCH).
The legal procedure to formally seize 69,370 Bitcoin and other cryptocurrency from the now-defunct dark web marketplace Silk Road has been completed by a US appeals court.
The US District Court of Appeals for the Ninth Circuit has upheld the transfer of Bitcoin to federal jurisdiction, per a court filing dated December 20.
This move is in response to an earlier decision establishing the government’s ownership of the digital assets connected to Silk Road’s illegal activities.
In addition to Bitcoin, the confiscated Bitcoin assets also included Bitcoin gold (BTG), Bitcoin SV (BSV), and Bitcoin Cash (BCH).
In August, a US court rendered the first ruling on Bitcoin on Silk Road. It came after the bitcoin was taken by the US Justice Department in 2020, and the agency filed a motion to forfeit it formally. The confiscated Bitcoin was worth more than $1 billion.
The first complaint from 2020 stated that the cryptocurrency had been taken over by the US government and that “Individual X” had turned it in. This person had gained access to Silk Road’s finances through hacking.
The hacker on the Silk Road is identified as James Zhong by earlier reportage from CoinCodeCap. In April, Zhong, who is now 32, received a sentence of one year in federal jail.
A crypto wallet associated with the US Department of Justice (DOJ) moved roughly 9,825.25 Bitcoin, estimated to be worth $299 million, through several transactions on July 12.
Analysts who follow cryptocurrency constantly monitor the funds’ movements because traders often make assumptions about how a significant sale by the US government may affect the price of Bitcoin.
The Silk Road, a website known for selling narcotics and firearms, was founded and operated by Ross Ulbricht, who was given a life sentence. Ulbricht was arrested in late 2013, and the FBI shut down the website.
Ulbricht consented to pay off his US government debt in 2022 by using $3 billion in Bitcoin that had been stolen. He also renounced his claim to $69,470 worth of Bitcoin.
