Three years after the seizure of Bitcoin associated with the Silk Road, a notorious darknet marketplace, a significant legal development has marked the conclusion of this infamous chapter. A U.S. court of appeals has issued a decisive ruling, ordering the forfeiture of 69,370 BTCs. These digital assets were reportedly hacked by an individual known as Individual X, who, on November 3, 2020, entered into a consent and agreement of forfeiture with the U.S. Attorney’s Office of the Northern District of California.
The Silk Road, which emerged in 2011 as one of the first contemporary darknet markets, gained widespread attention in 2012 when over 50,000 bitcoins were seized from James Zhong, a Georgia native who had pleaded guilty to wire fraud related to the illegal acquisition of tokens from the dark web market. The mastermind behind the illicit marketplace, Ross Ulbricht, received a life sentence for his involvement.
The confiscated Bitcoin, amounting to approximately $3.3 billion, represented the largest cryptocurrency seizure in the history of the Department of Justice. Subsequently, the government announced its intention to sell the seized Silk Road-related BTC over the course of the year, indicating potential plans to divest itself of more assets.
In the ongoing developments of 2023, various wallets identified as belonging to the U.S. government and associated with the Silk Road have been observed transferring substantial amounts of confiscated bitcoins. These transactions raise speculation about the government’s strategy and its potential impact on the cryptocurrency market as it continues to navigate the aftermath of the Silk Road saga.
Bitcoin Hit 20-Month High
Meanwhile, the value of bitcoin has surpassed the $44,000 threshold, a milestone not reached since April 2022. This surge appears to be fueled by advancing developments in the collaboration between financial giant BlackRock and regulatory authorities, who are currently evaluating the approval of BlackRock’s proposed spot bitcoin exchange-traded fund [ETF].
In the most recent update, discussions between the prominent AUM and the Securities and Exchange Commission [SEC] entered a second round, focusing on the iShares Bitcoin Trust and its compliance with NASDAQ Rules 57119 [d]. This marks the second meeting within a month dedicated to addressing the necessary rule modifications essential for the potential inclusion of a bitcoin exchange-traded fund on the market.