US Seizes About 70,000 Bitcoins Linked to Silk Road: What Will the US Do with These Bitcoin?

• A U.S. appeals court has issued an order formalizing the seizure of 69,370 Bitcoins and other cryptocurrencies associated with the now-closed Silk Road dark web marketplace.
• The court document indicates that Ross Ulbricht, the founder of Silk Road, is listed as a defendant, with two claimants and the U.S. government as plaintiffs.
• Ross Ulbricht, the founder of Silk Road, is currently serving a life sentence for establishing and operating the online marketplace from 2011 to 2013.

An appeals court in the USA approved the decision to seize Bitcoins linked to Silk Road: What will the USA do with these Bitcoins?

US Court Approves Seizure of Bitcoins

A U.S. appeals court has issued an order formalizing the seizure of 69,370 Bitcoins and other cryptocurrencies associated with the now-closed Silk Road dark web marketplace. Ross Ulbricht, the founder of Silk Road, is listed as a defendant in the court document, with two claimants and the U.S. government as plaintiffs. The formalization of government control over the seized digital assets involves funds previously obtained by an individual known as “Individual X,” as mentioned in the indictment.

This individual is claimed to have infiltrated Silk Road and seized control of the funds. The completion of this legal process underscores the government’s authority over the seized digital assets linked to the notorious dark web marketplace.

Ross Ulbricht, the founder of Silk Road, is currently serving a life sentence for establishing and operating the online marketplace from 2011 to 2013. The platform facilitated illegal trade in drugs and weapons before being forcibly shut down by the FBI in late 2013 following Ulbricht’s arrest.

In 2022, Ulbricht agreed to allocate a portion of the stolen bitcoins, valued at $3 billion, to settle debts with the U.S. government. As part of this arrangement, he also forfeited the rights to 69,470 Bitcoins. A few days ago, a wallet address containing exactly 69,369 Bitcoins witnessed a fund movement transaction for the first time since 2015.

Will the U.S. Government Hold or Sell BTC?

Throughout the year, the U.S. government has sold bitcoins obtained through the Silk Road route. Earlier this year, U.S. officials held over 41,000 Bitcoins while selling nearly 10,000. Considering that the price of Bitcoin has shown a significant increase of 100% since the beginning of 2023, the U.S. government might consider holding them. Analysts have also begun setting price targets for Bitcoin at $100,000 and beyond, given their optimism about the approval of a spot Bitcoin ETF and the Bitcoin halving in 2024.