The US government is preparing to sell more than $1.17 billion in Bitcoin seized from the Silk Road illicit marketplace case.
According to a federal court filing, the remaining 41,491 Bitcoin will be sold after the sentencing of James Zhong, the hacker accused of stealing the virtual assets from Silk Road in 2012.
The government has already sold approximately 9,861 BTC for more than $215 million on March 14th. Silk Road was a notorious darknet marketplace involved in illegal activities, and Zhong was accused of using fake accounts and rapid deposits to trick the payment processing system and steal the Bitcoin.
The sale of Bitcoin seized from illegal activities has become a common practice for governments worldwide. In this case, the US government is liquidating the remaining BTC seized from Zhong’s home in Georgia.
The current value of Bitcoin stands at $28,332, and the sale of the remaining BTC would be valued at $1.175 billion.
The US government’s decision to sell the Bitcoin after Zhong’s sentencing ensures that the assets’ disposition adheres to legal procedures. The proceeds from the sale will go to the government’s coffers, and the sale will benefit the crypto market by increasing liquidity.
It’s worth noting that Bitcoin’s value is highly volatile, and the asset has had sharp fluctuations in value in the past. Therefore, it’s challenging to predict the precise value of the seized BTC during the time of sale.
