Over $1.17 billion in Bitcoin (BTC) was confiscated by the US government during the inquiry into the Silk Road black market.
According to a new filing in federal court, the government intends to sell the remaining approximately 51,351 Bitcoin confiscated from hacker James Zhong, who authorities accuse of stealing the virtual assets from Silk Road in 2012.
The government reportedly sold 9,861 Bitcoins for over $215 million, leaving roughly 41,491. At the current price of Bitcoin, $28,332, selling the remaining BTC would generate $1.17 billion. The government has stated that it will sell the remaining BTC on April 14, after Zhong has been sentenced.
Judge Schofield heard arguments in the loss of 51,351.89785803 Bitcoin in the Ulbricht case, and the government has started settling that Bitcoin.
The remaining Bitcoin in the Ulbricht case is approximately 41,490.72 BTC, which the government believes will be liquidated in four more installments this calendar year. The second round of bankruptcy will not take place before Zhong’s punishment, as reported by IRS Criminal Investigation – Asset Recovery & Investigative Services.
Silk Road was a former darknet illegal market. Money smuggling and drug dealing were among the illegal pursuits often associated with the site.
Zhong was accused of frauding the website’s payment processing system by using false accounts, fast deposits, and larger withdrawals to take Bitcoin.
Federal authorities eventually located the stolen Bitcoin at Zhong’s Georgia residence, confiscating it in November 2021 at a value of $3.6 billion. Zhong admitted to committing wire fraud to the theft.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.