The US Government to Sell $117 Million Worth of Bitcoin Seized from Silk Road Dealer
The US Department of Justice has announced its plans to auction off 2,933 Bitcoin that was seized from Ryan Farace, a convicted dealer on the Silk Road. The current value of the BTC is approximately $117 million, and the auction will take place in the near future.
Background: Ryan Farace’s Conviction and Crypto Funds
In 2018, Ryan Farace was convicted for selling Xanax on dark web platforms like Silk Road, earning over 9,000 Bitcoin from his transactions. Initially, he forfeited only 24 Bitcoin worth around $16 million. While in prison, he claimed to have lost access to his crypto assets.
However, federal officials discovered that Farace conspired with his father Joseph to transfer nearly 2,900 Bitcoin out of the country using an illegal cell phone. Officials intercepted their communications and recovered the Bitcoin, which is now valued at around $117 million.
Money Laundering Conspiracy Charges and Shaun Bridges’ Involvement
Both Ryan and Joseph Farace pleaded guilty to money laundering conspiracy charges. Ryan received an additional 4-year sentence, while his father was sentenced to 19 months in prison.
Some of the seized Bitcoin was also linked to former Secret Service agent Shaun Bridges, who stole Bitcoin during the Silk Road investigation. Bridges previously agreed to forfeit the stolen crypto, estimated to be worth $800,000 at the time but valued at over $36 million today.
Auctioning Off the Bitcoin Stash
With no other claims filed within the allotted 60-day period, the government has full authority to sell off the combined stash of almost 3,000 Bitcoin at auction. This sale, involving crypto tied to law enforcement corruption and Silk Road, could potentially exert further downward pressure on Bitcoin’s price.
Hot Take: Selling Seized Silk Road Bitcoin Raises Questions About Crypto’s Legitimacy
The upcoming auction of $117 million worth of Bitcoin seized from Silk Road dealer Ryan Farace raises questions about the legitimacy and security of cryptocurrencies. While governments continue to crack down on illegal activities related to crypto, such as money laundering and dark web transactions, it also highlights the potential for abuse by individuals in positions of power, like Shaun Bridges. As the crypto market matures, it is crucial for regulatory frameworks to be established to prevent such incidents and ensure the trust and integrity of digital assets.
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