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US Government Plans to Sell Over $1.17 Billion worth of BTC Seized from Illicit Marketplace Silk Road

The government of the United States is planning to sell over $1.17 billion worth of Bitcoin (BTC) that was seized as part of the Silk Road illicit marketplace fiasco.

According to a new federal court filing, the government is planning to sell the remainder of the approximate 51,351 Bitcoin seized from hacker James Zhong, who authorities accused of stealing the virtual assets from Silk Road in 2012.

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Going by the filing, the government has already sold about 9,861 BTC of the total amount seized for more than $215 million on March 14th, leaving about 41,491 BTC.

At Bitcoin’s current value of relatively $28,300, the sale of the remaining BTC would have a value of $1.175 billion.

The filing was with the U.S. District Court for the Southern District of New York and pertains to the sentencing of Zhong. The government says it will not sell the remainder of the BTC until after Zhong is sentenced, which is scheduled for April 14.

“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.

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Of the Bitcoin forfeited in the Ulbricht case, there remains approximately 41,490.72 BTC, which the Government understands is expected to be liquidated in four more batches over the course of this calendar year. The Government understands from IRS Criminal Investigation – Asset Recovery & Investigative Services that the second round of liquidation will not be sold prior to Zhong’s sentencing date.”

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Solomon Odunayo
Solomon Odunayo
Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.

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