The US Court of Appeals has approved a cryptocurrency confiscation order related to the dark web platform Silk Road.
The resolution was adopted on December 20th. The court approved the seizure of 69,370 Bitcoins (BTC) and other cryptocurrencies as part of the Silk Road case. The defendants include Silk Road founder Ross Ulbricht and the US government as plaintiffs.
Although the decision was made in August, it will not take effect until after the US Court of Appeals ruling. According to the original complaint, the US government controlled the cryptocurrency after it was transferred by the so-called “Person X,” who hacked Silk Road and gained control of its funds.
In 2020, the US Department of Justice seized more than $1 billion worth of cryptocurrency (more than $3 billion at current rates) and began formal confiscation. Ulbricht was taken into custody on October 2, 2013. In 2015, a US court sentenced him to two life sentences plus 40 years without parole.
Confiscated Bitcoins Make the US Government One of the Largest BTC Owners. It owns about 195,000 BTC, almost 1% of the total supply. Most of the assets in government accounts have been seized by cybercriminals.
Source: 21.co
Funds are stored offline in hardware wallets and controlled by the Department of Justice (DoJ), the Internal Revenue Service (IRS), and other agencies. When a government agency takes control of a crypto asset, it does not immediately become US property. The court issues a confiscation order, the government takes ownership and transfers the asset to the US Marshals Service, which then liquidates it and converts it into fiat money.
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