Silk Road’s 69,370 Bitcoin Now In US Government Hands

The crypto world witnessed a significant chapter close on December 20, 2023, as the United States Court of Appeals finalized the forfeiture of 69,370 Bitcoin. This decision, stemming from the notorious Silk Road case, marks one of the most substantial forfeitures in the annals of digital currency.

Final Chapter In Silk Road Saga

Silk Road, a now-defunct dark web marketplace, became synonymous with BTC in its early days. Since the shutdown of this notorious dark web marketplace, US authorities have been actively working to confiscate the crypto assets amassed during its operation

Their efforts have seen significant progress, leading to the recent development reported. On Wednesday, the Ninth Circuit US District Court of Appeals confirmed the transfer of the seized Bitcoin into federal possession.

This confirmation follows the US Department of Justice’s (DOJ) initial seizure of these assets in 2020, then valued at over $1 billion. This forfeiture includes a diverse mix of cryptocurrencies such as Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin Gold (BTG), and Bitcoin SV (BSV).

The court’s latest move finalizes the US government’s claim over these assets, concluding a significant chapter in the history of Bitcoin.

Silk Road’s Recent Bitcoin Transactions

July 2023 witnessed intriguing movements related to Silk Road’s funds, with over 9,000 BTC transferred from addresses linked to the marketplace. These transactions were believed to be part of the DOJ’s efforts in managing the seized assets.

This development followed the November 2021 seizure of 50,000 BTC from Silk Road’s hacker, James Zhong, who admitted to wire fraud in unlawfully acquiring BTC from Silk Road in 2012. Zhong’s guilty plea and subsequent asset forfeiture by law enforcement marked a landmark moment in the DOJ’s crypto enforcement history.

Zhong’s confession shed light on the psychological aspects of his crime, revealing a quest for significance that ironically ended up benefiting the government financially. Despite the unresolved nature of the original theft from Zhong’s residence, his arrest and conviction have brought a sense of closure to a pivotal crypto crime saga.

Regardless, BTC’s market performance has remained resilient amid these legal developments. The digital currency has experienced a slight decline of 0.5% in the past 24 hours and a 3% increase over the past week.

At the time of writing, BTC is trading above $43,000, with its trading volume having seen a substantial increase from $11 billion on Wednesday to over $26 billion as of today. This uptick in activity comes amid predictions from various industry experts and analysts who suggest that the current trading price of BTC might not be sustained for long.

Specifically, Matrixport, a notable player in the crypto finance sector, has projected that BTC could experience a significant surge, potentially reaching $50,000 levels by early 2024. This forecast hinges on the anticipated approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC), expected to occur by January.

Featured image from iStock, Chart from TradingView