The U.S. Court of Appeals for the Ninth Circuit ruled that 69,370 cases worth more than $1 billion were linked to the illegal web marketplace Silk Road. Bitcoin officially approved the seizure of its assets. The proceedings, initiated in August, were officially approved by the US District Court.
Founded in 2011 by Ross Ulbricht, Silk Road operated until it was shut down by the Federal Bureau of Investigation in 2013. Ulbricht, who is known for facilitating the illegal drug and weapons trade and is currently serving a life sentence, agreed to give up $3 billion in stolen BTC, including the seizure of 69,470 Bitcoins, to fulfill his obligations to the US government in 2022.
In an important development in 2020, the US Department of Justice made an official application to take control of Bitcoins. Specifically, 69,369 BTC was transferred from a dormant wallet dating back to 2015 shortly before the final decision. WuBlockchain, a respected Chinese journalist, highlighted this transaction, pointing out that Ulbricht, the two plaintiffs, and the US government were involved in the legal proceedings.
The cryptocurrency community is anticipating the potential effects of this massive seizure, speculating on the impact of a possible sale by the US government on Bitcoin’s price.