{"id":19388,"date":"2023-04-01T19:04:12","date_gmt":"2023-04-01T19:04:12","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-government-plans-to-sell-over-41000-bitcoins-confiscated-from-silk-road-hacker-bitcoin-news\/"},"modified":"2023-04-01T19:04:12","modified_gmt":"2023-04-01T19:04:12","slug":"us-government-plans-to-sell-over-41000-bitcoins-confiscated-from-silk-road-hacker-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-government-plans-to-sell-over-41000-bitcoins-confiscated-from-silk-road-hacker-bitcoin-news\/","title":{"rendered":"US Government Plans to Sell Over 41,000 Bitcoins Confiscated from Silk Road Hacker \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to a court document filed on March 31, 2023, regarding the sentencing of James Zhong, who stole over 50,000 bitcoin from the Silk Road marketplace, the U.S. government plans to liquidate 41,490 bitcoin \u201cover the course of this calendar year.\u201d<\/strong><\/p>\n

U.S. Government Discloses Strategy for Selling Confiscated Bitcoin<\/h2>\n

The U.S. government, one of the largest holders of bitcoin, plans to sell<\/a> 41,490 BTC<\/a> in 2023, according to a court filing submitted in the case of James Zhong\u2019s sentencing. The government made the historic bitcoin seizure<\/a> in November 2022 when it confiscated over 50,000 BTC<\/a> from Zhong. The defendant pleaded guilty \u201cto committing wire fraud in September 2012 when he unlawfully obtained over 50,000 bitcoin from the Silk Road dark web internet marketplace.\u201d<\/p>\n

Bitcoin.com News reported six days ago that, according to Dune Analytics data<\/a> and public disclosures, the U.S. government holds 205,515 BTC<\/a>. In the filing submitted on Friday, federal authorities plan to sell at least 41,490 BTC<\/a> worth $1.17 billion at today\u2019s exchange rates.<\/p>\n

The court document notes, \u201cWith respect to the 51,351.89785803 bitcoin forfeited in the Ulbricht case before Judge Schofield, the government has begun liquidating (selling) it. On March 14, 2023, the government sold 9,861.1707894 BTC<\/a> (of the 51,351.89785803 BTC<\/a>) for a total of $215,738,154.98.\u201d<\/p>\n

According to onchain analytics firm Glassnode, the sale of 9,861 BTC<\/a> was detected<\/a>, or at least the period of time when it was sent to a major exchange prior to selling. \u201cOf the bitcoin forfeited in the Ulbricht case, there remains approximately 41,490.72 BTC<\/a>, which the government expects to be liquidated in four more batches over the course of this calendar year,\u201d the filing adds.<\/p>\n

Glassnode\u2019s account of the onchain transfer explains that the funds were likely sent to Coinbase. If the funds were sold on Coinbase, it would be different from the U.S. government\u2019s previous auction style of selling seized crypto assets. When the government sells the 41,490 BTC<\/a>, it will still have 164,025 BTC<\/a>, or $4.65 billion worth, remaining.<\/p>\n

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Analytics<\/a>, Asset<\/a>, Auction<\/a>, Bitcoin<\/a>, bitcoin sale<\/a>, Blockchain<\/a>, BTC<\/a>, Coinbase<\/a>, confiscation<\/a>, Criminal Investigation<\/a>, Cryptocurrency<\/a>, Currency<\/a>, dark web<\/a>, Digital<\/a>, Exchange<\/a>, Fed sale<\/a>, financial<\/a>, forfeiture<\/a>, Fraud<\/a>, glassnode<\/a>, James Zhong<\/a>, Liquidation<\/a>, Marketplace<\/a>, prosecution<\/a>, Seizure<\/a>, sentencing<\/a>, Silk Road<\/a>, Ulbricht<\/a>, US government<\/a>, Wire Fraud<\/a><\/div>\n<\/div>\n

What do you think of the U.S. government\u2019s decision to liquidate its seized bitcoin? Share your thoughts in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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