The crypto market may look uncertain at the moment, but some, such as the US government, are still profitable from Bitcoin sales. The Fed sold cryptocurrencies earlier this month, raising more than $215 million, according to court documents filed today.
US Government Sells $215M in Seized Silk Road Bitcoin
The crypto in question came from the Silk Road marketplace. Police made a historic seizure in November after hacker James Zhong confessed to stealing it. They are selling it now and still have 41,490 bitcoins ($1.1 billion), the filing said.
“With respect to the 51,351.89785803 Bitcoin forfeited in the Ulbricht case before Judge Schofield, the Government has begun liquidating (selling) it. On March 14, 2023, the Government sold 9,861.1707894 BTC (of the 51,351.89785803 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,” Friday’s document read.
The “Ulbricht case” refers to Silk Road founder Ross Ulbricht, who was sentenced to life imprisonment in a sensational case back in 2015. Ulbricht operated the Silk Road online black market, which was primarily used to buy and sell illegal drugs, before authorities shut it down in 2014. James Zhong pleaded guilty to wire transfer charges last year after the government alleged he stole 50,676 bitсoins by manipulating the Silk Road trading system in 2012. He hid his stash for ten years until its value reached $3.3 billion.
“The defendant had in his possession multiple computer servers, virtual private networks, among other things, enabling him to commit the offense. He then managed to keep the Bitcoin protected, and his identity hidden for several years.” – prosecutors added in Friday’s filing.
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