The United States government plans to liquidate more than 41,000 Bitcoin (BTC) seized as part of a case involving Silk Road creator Ross Ulbricht.
A March 31 filing with the US District Court for the Southern District of New York regarding the judgment of James Zhong indicated that US government authorities had begun liquidating approximately 51,352 seized BTC in the Ulbricht case. According to the filing, officials sold approximately 9,861 BTC for more than $215 million on March 14, leaving approximately 41,491 BTC behind.
“The government understands that (the seized Bitcoin) is expected to be settled in four more lots over the course of this calendar year,” the court filing said. “The Government understands from IRS Criminal Investigation – Asset Recovery and Investigative Services that the second round of settlement will not be sold before Zhong’s sentencing date.”
In November, Zhong pleaded guilty to wire fraud charges related to running a scheme to steal Bitcoin from Silk Road in 2012. US authorities seized more than 50,000 BTC, worth more than $3 billion at the time. , from his home in Georgia in November 2021. It was one of the largest cryptocurrency seizures by the government until the recovery of approximately $3.6 billion in February 2022 related to the 2016 Bitfinex hack.
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The Silk Road marketplace, which has been defunct for 10 years, originally allowed users to buy and sell illicit goods, including weapons and stolen credit card information. However, the market also caught the attention of US authorities, who arrested Ulbricht in 2013. He is currently serving two life sentences without the possibility of parole.
I was arrested at the age of 29 and today I am turning 39. I lost my 30 in prison.
During that time, I did my best to learn from my mistakes, improve myself, and help others do the same.
I hope one day I can make my peace as a free man too.
—Ross Ulbricht (@RealRossU) March 27, 2023
The BTC price has had a volatile month, dipping below $20,000 on March 10 and breaking above $29,000 on March 29. At press time, the price of BTC was $28,378.
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