US government finally confiscates bitcoins belonging to Silk Road

The U.S. Court of Appeals has approved the final decision to confiscate 69,370 bitcoins (over $ 3 billion) and several other cryptocurrencies previously owned by the Silk Road darknet marketplace.

on December 20, the U.S. Court of Appeals for the Ninth Circuit confirmed the transfer of bitcoins to federal control. In addition to bitcoin, Bitcoin Gold, Bitcoin SV, and Bitcoin Cash were seized. The list of defendants in the case is headed by Silk Road founder Ross Ulbricht, as well as two defense lawyers and representatives of the US government as a plaintiff.

The initial court ruling on Silk Road bitcoins was made back in August. It was preceded by the seizure of cryptocurrency by the US Department of Justice and a request for formal asset forfeiture. At the time, the estimated value of the seized bitcoins exceeded $ 1 billion.

According to the 2020 lawsuit, the US government received the cryptocurrency from a hacker known as Individual X. He hacked Silk Road and gained control over its funds. According to Cointelegraph, the attacker was later identified as James John. In April, he was sentenced to a year in federal prison.

on July 12, a crypto wallet belonging to the US Department of Justice conducted several transactions, transferring about 9,825.25 BTC worth about $ 299 million related to the Silk Road. These actions have attracted the attention of crypto analysts who are closely monitoring the movement of these funds, as large-scale sales by the US government could seriously affect the market value of bitcoin.

We would like to add that Ross Ulbricht, who was sentenced to life imprisonment, founded the Silk Road darknet site and managed this platform from 2011 to 2013. The site became famous for selling drugs and weapons and was shut down in late 2013 after Ulbricht’s arrest. In 2022, Ulbricht agreed to use stolen bitcoins worth $ 3 billion to pay off his debt to the US government. In addition, he renounced his claim to 69,470 bitcoins.