U.S. Government to Auction $117 Million Seized Bitcoin from Silk Road Bust

• The U.S. government announced plans to sell off $117 million worth of bitcoin seized from the now-defunct dark web marketplace Silk Road.
• The bitcoin was seized from Silk Road users who were criminally charged, including “Xanaxman” who sold prescription drugs on the site.
• Silk Road operated from 2011-2013 as an illegal online marketplace for drugs and other illicit goods, until the FBI shut it down and arrested its founder.

The U.S. government recently announced plans to sell off bitcoin seized in a high-profile dark web drug case. The bitcoin originates from the now-defunct online black market Silk Road and is worth approximately $117 million.

The Silk Road Drug Bust

In January 2023, the U.S. filed a notice stating its intention to dispose of 2,875 bitcoin seized from Ryan Farace and Sean Bridges. Farace, known online as “Xanaxman,” sold prescription drugs through Silk Road in exchange for bitcoin. He was charged by the DOJ in 2018, with the bitcoin being seized in 2021.

Silk Road operated on the dark web from 2011-2013 as a marketplace where illegal drugs and other illicit goods were bought and sold for bitcoin. The site’s founder, Ross Ulbricht, is currently serving a life sentence for his role in operating the platform. Silk Road was shut down in 2013 after Ulbricht was arrested by the FBI.

The Government’s Plan to Sell the Bitcoin

The seized bitcoin is currently worth around $133 million. The government’s notice indicates that it plans to sell the cryptocurrency in a manner directed by the U.S. Attorney General. This sale is subject to a 60-day period where interested parties can come forward to claim an interest in the assets.

The sale of the Silk Road bitcoin by the U.S. government has sparked speculation about the potential impact on bitcoin’s price if such a large amount enters the open market. The government previously auctioned off bitcoin connected to Silk Road in past years.

Conclusion

The U.S. government’s planned sale of $117 million in seized Silk Road bitcoin represents one of the largest cryptocurrency auctions undertaken by the government to date. The bitcoin originates from the high-profile prosecution of the dark web marketplace and its founder. It remains to be seen what effect the sale will have on the price of bitcoin.