Bitcoin

Bitcoins Seized From Silk Road Worth $130M Are Offered For Sale By The US Government

Key Points:

U.S. government to auction $130 million in Bitcoins seized from Silk Road.
Ryan and Joseph Farace sentenced for dark web involvement.
Interested parties have 60 days to claim seized assets.

The U.S. government is poised to auction off $130 million worth of Bitcoins seized from Silk Road darknet marketplace, according to a recent filing from the United States District Court for the District of Maryland.

Bitcoins Seized From Silk Road Worth $130M Are Offered For Sale By The US Government 2

Bitcoins Seized From Silk Road Worth $130 Million Up for Sale

The notice indicates the government’s intention to sell two lots of Bitcoin, totaling 2,933 BTC, with one lot valued at $129 million and the other at $3.3 million.

Interested parties, excluding defendants, have a 60-day window from January 10, 2024, to claim an interest in the assets or file petitions for remission or mitigation. This follows a court-approved forfeiture of 69,000 Bitcoins seized from Silk Road case, finalized in December.

The seized funds represent only a fraction of the U.S. government’s Silk Road-related seizures, which also include $3.6 billion from James Zhong in 2022 and $1 billion in 2020.

The announcement comes in the wake of the sentencing of Ryan Farace, 38, and his father, Joseph Farace, 72, who were involved in dark web transactions, notably in selling Xanax pills under the alias ‘Xanaxman.’ Ryan Farace, who received over 9,138 Bitcoins for his activities, recently received an additional 54-month sentence, while Joseph Farace received 19 months followed by two years of supervised release.

The two lots of Bitcoin were seized in 2021 in Memphis, Tennessee, and Arlington, Virginia, respectively, and were condemned and forfeited to the U.S. government on January 8, 2024. The resolution of any pending petitions will pave the way for the government to transfer clear title to the assets to future purchasers or transferees.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.