In a recent development, the U.S. government has expressed its intent to liquidate approximately $117 million in bitcoin. This digital currency was confiscated in a significant dark web drug raid. The announcement, dated January 8, revealed the government’s plans to dispose of the seized bitcoin “as directed by the United States Attorney General”. The stash, amounting to nearly 2,875 bitcoin, was seized from Ryan Farace and Sean Bridges in 2021, along with an additional 59 bitcoin that belonged solely to Farace. At the time of the announcement, the value of the seized bitcoin was estimated to be around $133 million.
Charges against the Silk Road Drug Dealer
In 2018, the U.S. Department of Justice accused Farace of selling Xanax illegally on the dark web. The indictment claimed that Farace traded the drugs for bitcoin on the dark web. This month, the U.S. Attorney’s Office announced that both Farace and his father, Joseph Farace, were sentenced to prison for conspiracy to launder money.
Operating under the pseudonym ‘Xanaxman’, Farace confessed in his plea deal that he used Silk Road, a notorious dark web site, for his operations. The U.S. government, in its statement detailing its intent to sell the seized bitcoin, stated that anyone claiming an “interest in the forfeited property” could do so within a 60-day period.
Previous Silk Road Related Bitcoin Forfeiture
In a separate event in December, a U.S. appeals court finalized a mandate formalizing the forfeiture of 69,370 bitcoin linked to the now-inoperative Silk Road dark web market. Market observers have been keenly watching these funds, often speculating about the potential impact of a large-scale bitcoin sale by the U.S. government on the cryptocurrency’s price.
Who was behind Silk Road?
Ross Ulbricht, the founder of Silk Road, is currently serving a life sentence in prison. He ran the dark web site, infamous for its trade in drugs and weapons, from 2011 to 2013. The Federal Bureau of Investigation shut down the site following Ulbricht’s arrest in late 2013.
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Disclaimer: This article is intended solely for informational purposes and should not be construed as legal, tax, investment, financial, or other advice.
