US Government Plans to Sell Confiscated Bitcoin Worth $130 Million from Silk Road Case

The United States government, in a new filing, announced that it will sell Bitcoin (BTC) worth $130 million seized during the Silk Road case. Following a court order, a forfeiture notice was made public earlier this month, citing the government’s plans to “dispose” of the bitcoin.

Details of the Seized Assets

The decision to sell the $130 million worth of Bitcoin comes after the court-approved forfeiture connected with the Silk Road case. The US government will auction off both lots of Bitcoin, comprising 58.7 BTC, valued at $3.3 million, and 2874.9 BTC, valued at $129 million.

The notice enables a 60-day window for anyone other than the defendants to file a petition claiming the assets. The United States will get an unambiguous title to the Bitcoins when all ancillary petitions are resolved or in the absence of any such petitions.

Background on the Silk Road Marketplace

The United States government seized these digital assets of more than 2,930 BTC in the Silk Road case. These Bitcoins were taken from Ryan and Joseph Farace, sentenced for conspiracy to launder money and drug trafficking through its dark web marketplaces. It is an important turning point in the battle against the financial institutions that sustain illicit dark web marketplaces like Silk Road.

The law enforcement agencies shut down the site in 2013, which also resulted in the seizure of Bitcoin. The US administration intends to dispose of these digital properties to continue its fight against unlawful activities and cybercrimes on the dark web.

Impact on Cryptocurrency Market

The impending sale of cryptocurrencies is predicted to spark significant excitement among investors and those monitoring the authorities’ efforts against unlawful activities in the crypto market.

The sale of such a large amount of Bitcoin could potentially influence the overall market dynamics. Based on the current market outlook, there may be a short-term downturn for Bitcoin, as shown in the ratio of put options to call options.

Leave a comment

My Newsletter

Sign Up For Updates & Newsletters