The US government is going to liquidate Bitcoins for more than 1.17 billion. In fact, it is Bitcoins seized in Silk Road illicit market case. The federal court has, in a new filing, declared its intention to sell the remainder of the few 51,351 bitcoins seized from hacker James Zhong. Authorities accuse him of stealing Silk Road’s virtual assets in 2012.
Biggest Bitcoin liquidation ever?
In the case, we learn that the government has already sold about 9,861 BTC. So, that equates to just over $215 million. Indeed, the transaction took place on March 14, as we learned The Daily Hodl. Of all Bitcoins seizedthere are only 41,491 left. Indeed, this quantity is equivalent to almost 1.175 billion dollars, if we consider the current value of Bitcoin. Thus, according to the said file:
“Regarding the 51,351.89785803 Bitcoins confiscated in the Ulbricht case before Judge Schofield, the government has started to liquidate (sell) them. On March 14, 2023, the government sold 9,861.1707894 BTC for a total of $215,738,154.98. After $215,738.15 in transaction fees, the net proceeds to the government were $215,522,416.83.
Of the bitcoin confiscated in the Ulbricht case, approximately 41,490.72 BTC remain. According to the government, they should be liquidated in four more batches during this calendar year. The government understands from IRS Criminal Investigation – Asset Recovery & Investigative Services that the second round of liquidation will not be sold until Zhong’s sentencing date. »
Where do the Bitcoins sold come from?
The Bitcoins sold were seized as part of the arrest of James Zhong. This hacker himself stole them from Silk Road. It is an illicit dark web market set up by Ross William Ulbricht. Besides, Zhong will soon be sentenced and the US government has decided to wait before selling the rest of Bitcoins. Said sentencing is scheduled for April 14.
In sum, the bitcoins seized were worth $3.6 billion at the time of their seizure. James Zhong pleaded guilty after his arrest in Georgia where he lived. Was Bitcoin liquidation the best solution?
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