• The U.S. government plans to liquidate 41,490 bitcoin from the Silk Road marketplace that was stolen by James Zhong in November 2022.
• The sale of 9,861 BTC was detected and the government expects to be selling four more batches over the course of this calendar year.
• After the sale, the government will still have 164,025 BTC ($4.65 billion) remaining in its possession.

U.S Government Plans to Sell Bitcoin Confiscated from Silk Road Hacker

The U.S. government plans to liquidate 41,490 bitcoin worth $1.17 billion at today’s exchange rates from the Silk Road marketplace which was stolen by James Zhong in November 2022 according to a court document filed on March 31, 2023 regarding his sentencing.

Bitcoin Seizure

The historic bitcoin seizure happened when the U.S government confiscated over 50,000 BTC from Zhong when he pleaded guilty „to committing wire fraud in September 2012 when he unlawfully obtained over 50,000 bitcoin from the Silk Road dark web internet marketplace.“

Government Discloses Strategy for Selling Bitcoin

According to Dune Analytics data and public disclosures, the U.S government holds 205,515 BTC and it has already sold 9,861 BTC for a total of $215 million on March 14th 2023 with respect to 51,351 BTC forfeited in Ulbricht case before Judge Schofield . Onchain analytics firm Glassnode reported that funds were sent likely sent to Coinbase and not through auction style as previous crypto asset sales done by US Government were done via auction style .

Remaining Funds

After selling 41,490 BTC ,the US Government will still have 164 025 BCT (worth $4 65 billion ) remaining in its possession .

Conclusion

The US Government is set to sell 41 490 BCT confiscated form Silk Road hacker over four batches this calendar year which would be worth more than 1 17 Billion USD at current exchange rate . After the sale it would still remain 164 025 BCT worth 4 65 Billion USD with it .