US Government Plans to Sell Over 41,000 Bitcoins Confiscated from Silk Road Hacker

According to a courtroom doc filed on March 31, 2023, relating to the sentencing of James Zhong, who stole over 50,000 bitcoin from the Silk Road market, the U.S. authorities plans to liquidate 41,490 bitcoin “over the course of this calendar 12 months.”

U.S. Government Discloses Strategy for Selling Confiscated Bitcoin

The U.S. authorities, one of many largest holders of bitcoin, plans to sell 41,490 BTC in 2023, in accordance with a courtroom submitting submitted within the case of James Zhong’s sentencing. The authorities made the historic bitcoin seizure in November 2022 when it confiscated over 50,000 BTC from Zhong. The defendant pleaded responsible “to committing wire fraud in September 2012 when he unlawfully obtained over 50,000 bitcoin from the Silk Road darkish internet web market.”

Bitcoin.com News reported six days in the past that, in accordance with Dune Analytics data and public disclosures, the U.S. authorities holds 205,515 BTC. In the submitting submitted on Friday, federal authorities plan to promote a minimum of 41,490 BTC price $1.17 billion at at this time’s trade charges.

The courtroom doc notes, “With respect to the 51,351.89785803 bitcoin forfeited within the Ulbricht case earlier than Judge Schofield, the federal government has begun liquidating (promoting) it. On March 14, 2023, the federal government bought 9,861.1707894 BTC (of the 51,351.89785803 BTC) for a complete of $215,738,154.98.”

According to onchain analytics agency Glassnode, the sale of 9,861 BTC was detected, or a minimum of the time frame when it was despatched to a serious trade previous to promoting. “Of the bitcoin forfeited within the Ulbricht case, there stays roughly 41,490.72 BTC, which the federal government expects to be liquidated in 4 extra batches over the course of this calendar 12 months,” the submitting provides.

Glassnode’s account of the onchain switch explains that the funds have been possible despatched to Coinbase. If the funds have been bought on Coinbase, it could be completely different from the U.S. authorities’s earlier public sale model of promoting seized crypto belongings. When the federal government sells the 41,490 BTC, it’s going to nonetheless have 164,025 BTC, or $4.65 billion price, remaining.

What do you consider the U.S. authorities’s determination to liquidate its seized bitcoin? Share your ideas within the feedback part under.