U.S. Government Silently Sells Portion of Seized Silk Road Bitcoin
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The United States government has made a profit off of its former enemy. No, I’m not talking about a new video game plot, but rather the sale of seized Silk Road Bitcoin. As it turns out, James Zhong’s stash of 51,351 BTC has been making some moves.
According to reports, the U.S. Department of Justice sold 9,861 of the confiscated BTC, netting them over $215.5 million. This leaves them with a remaining balance of 41,490 BTC, worth roughly $1.1 billion, which they plan to sell in four installments throughout the year.
It’s no secret that bitcoin can be used for nefarious purposes, such as funding illicit activities. This was precisely the case with the Silk Road, which James Zhong exploited to withdraw BTC from the platform. Luckily, U.S. authorities caught on and seized Zhong’s stash, putting an end to his shenanigans.
Zhong’s fate is sealed, as he’s already pleaded guilty to one count of wire fraud. However, he’s hoping to get off easy by asking the court to spare him prison time. His argument? A difficult childhood, autism, and the fact that his crime was victimless. We’ll have to wait until April 14 to see whether the court buys his story.
Did the US Government Sell Silk Road Bitcoin Through Coinbase?
So, how did the U.S. government sell the seized bitcoin? It’s likely that they used Coinbase, as on-chain analysts noticed wallets associated with the seized Silk Road funds move approximately 49,000 BTC to various fresh addresses at the beginning of March. One of these addresses was identified as belonging to the crypto exchange Coinbase, which received 9,825 BTC on March 7. It looks like the government is in the crypto game, after all!
All jokes aside, the sale of the seized Silk Road bitcoin serves as a reminder that cryptocurrencies are subject to regulation and governments around the world are keeping a close eye on their use. While the industry offers certain benefits, it’s crucial to prevent its misuses, such as money laundering and terrorism financing. It’s up to us to use this technology for good, and we hope that the U.S. government puts its newfound profits to good use as well.
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