Bitcoin/USD: US government will sell $25 million of bitcoin seized from Silk Road

on Jan 17, 2014
Updated: Oct 21, 2019

**, Friday 17 January:**

In a press release on Thursday, the Manhattan US Attorney’s office announced the forfeiture of 29,655 bitcoins that were seized from the online illegal bazaar Silk Road server during a raid in October. At the current price of BTC/USD, the stake is worth about $25 million, which is estimated to be around 1.5 percent of all bitcoins in the market. The US government will be pleased to unload its e-currency holdings, which have skyrocketed in value from nearly $4.0 million in October.

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The official statement by the Manhattan US Attorney made clear that “these bitcoins were forfeited not because they are bitcoins, but because they were, as the court found, the proceeds of crimes”.

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In the view of the prosecutors: “With today’s forfeiture of $28 million worth of bitcoins from the Silk Road website, a global cyber business designed to broker criminal transactions, we continue our efforts to take the profit out of crime and signal to those who would turn to the dark Web for illicit activity that they have chosen the wrong path.”

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Silk Road enabled commerce in illegal goods and services, with American prosecutors calling it “the most sophisticated and extensive criminal marketplace on the Internet”. About 600,000 Bitcoins worth about $2.4 billion have been exchanged on the online black market, but the boom was halted with the arrest of founder Ross Ulbricht on 1 October.

Ross Ulbricht, who is suspected of being the mastermind behind Silk Road, has been in custody since federal agents arrested him at the Glen Park branch of the San Francisco Public Library three months ago. The feds also seized a cache of 144,000 bitcoins that belonged to Ulbricht personally. While the government is seeking to liquidate those bitcoins as well, Ulbricht is disputing the forfeiture in a civil court.
Ulbricht is facing drug, computer hacking and money laundering conspiracy charges, but he claims that he is not the creator of Silk Road. However, Ulbricht stresses that the bitcoins found on his computer belong to him.
Right now, BTC/USD is trading on the Mt Gox exchange at around $902.00, down 2.34 percent intraday.


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