The Seizure of Silk Road’s Illegal Assets
A U.S. appeals court has concluded the legal process to seize 69,370 Bitcoin from the Silk Road, a dark web marketplace that no longer exists. The U.S. District Court of Appeals for the Ninth Circuit has confirmed the transfer of the Bitcoin to federal control, following a previous ruling that established the government’s right to the digital assets connected to Silk Road’s illegal activities. The seized Bitcoin assets also included Bitcoin Gold (BTG), Bitcoin SV (BSV), and Bitcoin Cash (BCH), in addition to Bitcoins.
Background of the Seizure
The initial judgment regarding Silk Road’s Bitcoin was issued in August, based on the U.S. Justice Department’s 2020 seizure and subsequent motion for official forfeiture of the cryptocurrency. At that time, the value of the seized Bitcoin exceeded $1 billion. The action was triggered by a movement of 69,369 Bitcoins from a wallet address, which drew attention as it involved funds linked to Silk Road’s illicit trade in drugs and other illegal items. Ross Ulbricht, the founder of Silk Road, was listed as the respondent in the filing.
U.S. Government: One of the Largest Bitcoin Holders
The U.S. government has become one of the largest holders of Bitcoin through seizures related to criminal activities such as cybercrime and darknet markets. The confiscated digital assets are securely held in offline, encrypted hardware wallets managed by federal agencies like the Department of Justice (DOJ) and the Internal Revenue Service (IRS). However, due to the complex legal process, the government does not actively trade or time the market, and liquidation could take years. During this time, the government retains control over the Bitcoin as evidence or proceeds of crime.
Hot Take: US Court Finalizes Forfeiture of 69,370 Bitcoin from Silk Road
A U.S. appeals court has completed the legal process to seize 69,370 Bitcoin from the Silk Road, a notorious dark web marketplace. The seized Bitcoin assets also included other cryptocurrencies like Bitcoin Gold, Bitcoin SV, and Bitcoin Cash. This seizure follows an earlier ruling that established the government’s right to these digital assets tied to Silk Road’s illegal activities. The U.S. government has become one of the largest holders of Bitcoin through seizures related to criminal activities, but due to the complex legal process, liquidation could take years. The government retains control over the Bitcoin as evidence or proceeds of crime during this time.
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