The US Department of Justice appeared in the news today after announcing the second-largest Bitcoin seizure ever. It was done at the end of 2021 in connection with the Silk Road, the infamous dark web marketplace.
According to the official press releaseDamian Williams, the United States Attorney for the Southern District of New York, has revealed that a joint investigation by his office and the Internal Revenue Service led to the discovery of a massive cache of bitcoins in November 2021.
Bitcoin November 7 2022
With more than 50,000 BTC, the stash was worth an estimated $3.36 billion at the time. This cache of BTC was recovered from James Zhong, with Zhong defrauding Silk Road back in 2012.
Silk Road scam
In September 2012, Zhong created several fraudulent accounts on Silk Road to carry out a scheme to defraud the market. The withdrawal processing system tricked the market into issuing nearly 50,000 BTC by triggering more than 140 transactions.
The Bitcoin exploits were moved to several different addresses in an effort to anonymize and prevent detection.
In August 2017, the Bitcoin hard fork resulted in Zhong receiving 50,000 BCH. He later exchanged it for 3,500 BTC, bringing his total holdings to 53,500 BTC.
Similar seizures by US authorities
This is not the first time that the US authorities have confiscated bitcoins related to the Silk Road. Back in November 2020, the US Department of Justice confiscated nearly 70,000 bitcoins, along with Bitcoin Cash (BCH), Bitcoin Gold (BTG) and Bitcoin Satoshi Vision (BSV). according to Court documentsThese cryptocurrencies were also stolen from the Silk Road.
Earlier this year, the Ministry of Justice open Biggest Bitcoin Seizure Ever – Nearly 120,000 in Number. This seizure of $3.6 billion was related to the hack that took place on Bitfinex in 2016.
Bitcoin Federal Elections
The seizures described above have made it clear that the US federal authorities are sitting on a bunker of BTC. This qualifies them as a great option.
Crypto-Twitter estimates that the authorities hold BTC in excess of 210,000 BTC. actually a user pointed out That’s when BTC from Mt. Gox is taken into account, with the number rising to 287,000 BTC.
For those keeping track, this should be a total of 287,000 BTC for any sale, or $5.7 billion for 20,000 BTC:
Gox: 142 thousand BC [from Japanese trustee entity]
Phoenix: 94,000 BTU [from press release]
Silk Road: 51,000 points [from press release]
– Sisyphus (@0xSisyphus) November 7 2022