The US to Sell $117 Million Worth of Bitcoin Seized from Silk Road Operator
The United States government has announced its plans to sell approximately $117 million worth of Bitcoin that was seized from a convicted drug trafficker involved in the Silk Road dark web marketplace. The forfeiture notice, released earlier this month, states that the government intends to “dispose” of the cryptocurrency. This announcement follows the recent sentencing of Ryan Farace and his father Joseph Farace for money laundering conspiracy. The notice provides a 60-day window for individuals other than the defendants to file a petition claiming an interest in the assets. Once all ancillary petitions are addressed, or if no such petitions are filed, the United States will gain clear title to the property.
Recovery of Over 2,933 Bitcoin Valued at $117 Million
The Justice Department reports that it successfully recovered 2,933 Bitcoin from the Farace family, which is currently valued at around $117 million. When the forfeiture notice was published on January 10, the approximate value listed was $133.5 million. Ryan Farace, operating under the alias Xanaxman, had previously been convicted in 2018 for manufacturing and selling Xanax pills through dark web platforms like Silk Road. It is estimated that he received over 9,138 Bitcoin for these transactions, equivalent to approximately $364 million today.
Ryan Farace’s Attempt to Transfer Bitcoin
In 2020, while incarcerated, Ryan Farace instructed his father Joseph to transfer 2,874 Bitcoin to a third party accomplice in order to move the funds out of the United States. Both individuals admitted their involvement in these actions during their plea agreements. Ryan was indicted on charges related to this incident in 2021 and was recently sentenced to an additional 54 months in federal prison. Joseph Farace received a 19-month prison sentence followed by two years of supervised release.
Hot Take: US Government to Auction Seized Bitcoin
The United States government’s decision to sell the $117 million worth of Bitcoin seized from a Silk Road operator reflects its ongoing efforts to combat criminal activities involving cryptocurrencies. By disposing of these assets, the government aims to prevent their potential use for illegal purposes while also potentially benefiting financially from the sale. This case serves as a reminder that law enforcement agencies are actively pursuing individuals involved in illicit activities within the crypto space and that they have the ability to seize and liquidate digital assets obtained through illegal means.
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