US Government to Auction Over $1.17 Billion in Seized Bitcoin
The US government plans to auction off the remaining 41,491 Bitcoin, valued at around $1.175 billion, seized in the Silk Road case after already selling about 9,861 BTC for over $215 million.
A recent federal court filing reveals that the US government is preparing to sell the remaining 41,491 Bitcoin (BTC), valued at approximately $1.175 billion, seized in the Silk Road illicit marketplace case. The Bitcoin was confiscated from hacker James Zhong, who was accused of stealing the digital assets from Silk Road in 2012.
The court filing indicates that the government has already sold around 9,861 BTC, generating more than $215 million on March 14th. The remaining BTC, currently valued at $28,332 each, will be auctioned off in four batches over the course of this year.
The filing was submitted to the U.S. District Court for the Southern District of New York and relates to Zhong's sentencing. The government will not proceed with the sale of the remaining BTC until after Zhong's sentencing, scheduled for April 14th. The government sold the initial 9,861 BTC for a total of $215,738,154.98, with net proceeds amounting to $215,522,416.83 after transaction fees. According to the IRS Criminal Investigation – Asset Recovery & Investigative Services, the second round of liquidation will not take place before Zhong's sentencing date.
Silk Road, an infamous darknet black market, operated from 2011 to 2013 and was frequently linked to illegal activities such as money laundering and drug trafficking. Zhong allegedly exploited the site's payment processing system by creating fake accounts and rapidly depositing and withdrawing large sums to steal Bitcoin.
In November 2021, federal authorities located the stolen Bitcoin at Zhong's residence in Georgia, seizing the digital assets valued at $3.6 billion at the time. Zhong later pleaded guilty to wire fraud in connection with the theft.
