US Seizes 50,000 Bitcoin Linked to Silk Road Case
The US government has announced the seizure of a massive stash of Bitcoin connected to the Silk Road black market, which was dismantled a decade ago.
US Seizes 50,000 Bitcoin Linked to Silk Road
On the evening of November 7th, the US Department of Justice revealed that it had seized 50,076 Bitcoin hidden by James Zhong, a suspect connected to the Silk Road marketplace in 2012.
According to the released information, the Bitcoin was seized in November 2021, at the peak of Bitcoin's all-time high (ATH). At that time, the seized Bitcoin was valued at over $3.36 billion. The DOJ confirmed this was the largest asset seizure in history as of November 2021, though it has since been surpassed by the $3.6 billion seizure from the Bitfinex hack in early 2022.
Based on Bitcoin’s current value, the 50,076 BTC is now worth approximately $1.036 billion.
[DB] US Attorney Announces $3.36 Billion Cryptocurrency Seizure in Connection With Silk Road
— db (@tier10k) November 7, 2022
James Zhong is accused of stealing this Bitcoin from the Silk Road and keeping it hidden for over a decade. After an extensive investigation, authorities traced Zhong to his residence in Georgia, where they successfully confiscated the entire stash.
In March 2022, Zhong surrendered to authorities and pled guilty to charges related to Silk Road in a court appearance on November 4, 2022. He also forfeited an additional 1,104 BTC. Zhong is facing a potential sentence of up to 20 years.
It remains unclear what the US government plans to do with the 50,076 BTC. If they decide to auction the Bitcoin, it could have some impact on the broader cryptocurrency market.
