The US appeals court took a decisive step in the infamous Silk Road case on Wednesday, December 20, when it officially approved the seizure of 69,370 Bitcoin and other cryptocurrencies. This landmark decision solidifies the US government’s control over crypto assets linked to the now defunct dark web market.
Bitcoin (BTC) obtained from Silk Road was seized
The U.S. Ninth Circuit Court of Appeals issued an order Wednesday approving the seizure of 69,370 Bitcoins and various other cryptocurrencies connected to the Silk Road case. This formalization follows the initial ruling from August, and the court document names Silk Road founder Ross Ulbricht, two plaintiffs, and the U.S. government as key parties.
The cryptocurrency in question was first confiscated by a mysterious person known as “Individual X” who reportedly infiltrated Silk Road and took control of the funds. This legal process is quite critical. Because it underlines the government’s authority over seized crypto assets associated with the dark web market.
Silk Road’s dark past
Silk Road founder Ross Ulbricht is currently serving a life sentence for his role in running the infamous online marketplace from 2011-2013. The platform facilitated illegal trade involving drugs and weapons until it was shut down by the FBI following Ulbricht’s arrest in late 2013.
In 2022, Ulbricht reached an agreement to allocate $3 billion worth of stolen bitcoins to pay off his debts to the US government. As part of this deal, he lost the rights to 69,470 Bitcoins. Recently, a wallet address containing a significant amount of Bitcoin, 69,369 to be exact, saw its first movement of funds since 2015.
What will be the fate of Bitcoins?
Throughout the year, the US government sold Bitcoins recovered from the Silk Road case. With the price of Bitcoin rising 100% since the beginning of 2023, speculation has arisen as to whether the government will hold on to the remaining Bitcoins or sell them. Driven by optimism about the potential approval of the Spot BTC ETF and Bitcoin’s halving in 2024, analysts are already predicting BTC price targets of $100,000 and above.
The official approval of the seizure decision marks an important chapter in the Silk Road saga. It also highlights the US government’s efforts to maintain control over crypto assets associated with illegal activities on the dark web. While the fate of the remaining Bitcoins remains uncertain, the cryptocurrency community is closely monitoring the government’s decision in an environment where the market is on the rise.
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