U.S. Appeals Court Finalizes Federal Seizure of Silk Road’s 69,370 Bitcoins
Summary:
The U.S. Ninth Circuit District Court of Appeals has completed the legal process for the federal government's seizure of 69,370 Bitcoin and various other cryptocurrencies from the now-defunct Silk Road. The legal conclusion affirms the U.S. government's claim to these digital assets, which were associated with Silk Road's illegal operations. Along with Bitcoin, the seized cryptocurrency batch included Bitcoin Gold, Bitcoin SV, and Bitcoin Cash. This follows the U.S. Justice Department's 2020 seizure and its move for official forfeiture of the digital assets. The transactions relating to these funds are closely monitored due to their potential impact on market dynamics and Bitcoin's price.
The legal proceedings for the U.S. government to seize 69,370 Bitcoin and various other cryptocurrencies from the collapsed dark web site, Silk Road, have been finalized by a U.S. appeals court. In a court document dated December 20, the Ninth Circuit U.S. District Court of Appeals confirmed the transfer of these digital assets to federal control. This decision is subsequent to an earlier ruling which endorsed the government's claim to the digital assets associated with Silk Road's illegal activities. The acquired batch of Bitcoin included Bitcoin gold (BTG), Bitcoin SV (BSV), and Bitcoin Cash (BCH), along with Bitcoin. The initial verdict on Silk Road's Bitcoin was made in August by the U.S. court, following the U.S. Justice Department’s seizure in 2020 and the subsequent motion for official forfeiture of the cryptocurrency. The value of the confiscated Bitcoin at the time exceeded $1 billion. The initial 2020 complaint detailed that the cryptocurrency had been obtained by the U.S. Government after being handed over by a person named "Individual X,” who had earlier invaded Silk Road and gained control of its funds. Previous reports by Cointelegraph identified the hacker of Silk Road as James Zhong, who was 32 at the time, and sentenced to a year in federal prison in April. On July 12, a wallet tied to the Department of Justice (DOJ) conducted various operations, transferring about 9,825.25 Bitcoin estimated at roughly $299 million linked to Silk Road. The transactions of these funds are being watched closely by crypto analysts, since market participants often speculate on how a sizable sale by the U.S. Government could affect Bitcoin's value. Ross Ulbricht, who established and operated Silk Road from 2011 to 2013 and is now serving a life sentence for selling drugs and weapons, had agreed in 2022 to use $3 billion in stolen Bitcoin to settle his debt with the U.S. Government. Moreover, he relinquished his claim to 69,470 Bitcoin.
Published At
12/21/2023 10:58:03 AM
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