The US government is planning to sell the Bitcoins seized by the FBI from two drug dealers who used Silk Road. The amount to be auctioned is $117 million worth of BTC, which may seem substantial but is not a large quantity in the world of cryptocurrency.
Silk Road was a dark web marketplace that facilitated anonymous transactions, particularly for illegal products like drugs. It was shut down multiple times by the FBI and finally closed in 2014. Many purchases on Silk Road were made using Bitcoin to avoid detection.
In February 2021, the DEA seized 2,875 Bitcoin from Ryan Farace, a drug trafficker known as Xanaxman. Farace had been selling drugs on Silk Road and continued to use his Bitcoin even while in prison. Now, after almost three years, a court has authorized the sale of these seized Bitcoins.
The BTC will be sold through an auction, following the usual procedure for such cases. The total market value of the seized Bitcoins is around $117 million. While this may seem significant, it’s worth noting that other recent Bitcoin sales have had minimal impact on the market.
It’s estimated that the US Department of Justice holds approximately 215,000 BTC from various seizures related to Silk Road. However, these will not be sold all at once and require individual court authorizations.
Overall, while sales of this magnitude could potentially affect the price of Bitcoin, historical data suggests that they are unlikely to significantly alter its long-term trend.
Hot Take: US Government to Sell Seized Bitcoins from Silk Road
The US government has announced plans to sell seized Bitcoins from two Silk Road drug dealers in an auction. The total amount up for sale is $117 million worth of BTC, which may seem like a lot but is relatively small in the crypto world. Silk Road was a notorious dark web marketplace that facilitated illegal transactions using Bitcoin. The seizure of these Bitcoins took place in 2021 after years of legal battles. While the sale could potentially impact the market, previous similar sales have had minimal effect on Bitcoin’s long-term price trend.
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