The U.S. Court of Appeals Approves Confiscation Order for Silk Road Cryptocurrencies
The U.S. Court of Appeals has given the green light to a confiscation order concerning cryptocurrencies linked to the darknet marketplace Silk Road.
Confiscation of 69,370 Bitcoins and Other Cryptocurrencies
On December 20th, the court ruled in favor of confiscating 69,370 Bitcoins (BTC) and other digital currencies related to the Silk Road case. The defendants in this case are Ross Ulbricht, the founder of Silk Road, and the U.S. government.
Cryptocurrency Controlled by “Individual X”
The U.S. government gained control of these cryptocurrencies after they were transferred by someone called “Individual X,” who hacked into Silk Road and took control of its funds. Although the decision was made in August, it required the approval of the U.S. Court of Appeals to become effective.
Seizure and Formal Confiscation of Over $1 Billion Worth of Cryptocurrency
In 2020, the U.S. Department of Justice seized and initiated the process for formally confiscating more than $1 billion worth of cryptocurrency associated with Silk Road. Ross Ulbricht, who was taken into custody on October 2nd, 2013, was sentenced to two life sentences plus 40 years without parole in 2015.
The U.S. Government Becomes a Major Holder of BTC
With this confiscation, the U.S. government becomes one of the largest holders of Bitcoin (BTC), owning around 195,000 BTC, which is almost 1% of the total supply. Most of these assets held by government accounts have been confiscated from cyber criminals.
Funds Stored Offline and Controlled by Government Agencies
The confiscated funds are stored offline in hardware wallets and are under the control of the Department of Justice (DoJ), the Internal Revenue Service (IRS), and other agencies. It’s important to note that when a government agency seizes a cryptocurrency, it doesn’t automatically become U.S. property. A confiscation order is issued by the court, granting ownership to the government, which then transfers the asset to the U.S. Marshals Service for liquidation into fiat currency.
Hot Take: U.S. Court Approves Confiscation Order for Silk Road Cryptocurrencies
The U.S. Court of Appeals has given its approval for the confiscation of cryptocurrencies associated with Silk Road, one of the most notorious darknet platforms. This decision makes the U.S. government one of the largest holders of Bitcoin, solidifying its efforts to combat cybercrime and illegal activities involving digital currencies. By taking control of these funds and liquidating them into fiat currency, the government aims to prevent further illicit use of these assets. This ruling serves as a reminder that law enforcement agencies are actively pursuing criminals in the crypto space and highlights the importance of security measures to protect digital assets.
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