U.S. Government to Auction $117 Million in Confiscated Bitcoin from Silk Road Case

cryptonews.com:

The U.S. government has filed a notice revealing its plans to auction approximately $117 million worth of Bitcoin (BTC) that was seized during a dark web drug bust.

In a notice dated January 8, the government said it aims to auction nearly 2,875 BTC seized from Ryan Farace and Sean Bridges in 2021, along with an additional 59 BTC belonging to Farace alone.

At the time of the filing, the seized Bitcoins were valued at around $133 million.

US FILES NOTICE TO SELL $130M OF BITCOIN SEIZED FROM SILK ROAD AGENT

Source: DB | Coins: BTC

— db (@tier10k) January 25, 2024

The U.S. Department of Justice had previously charged Farace in 2018 for illegally selling Xanax on the dark web.

According to the DOJ, Farace distributed drugs through sales on the dark web and received payments in Bitcoin.

Farace, operating under the pseudonym Xanaxman, admitted as part of a plea deal that he used the infamous dark web marketplace Silk Road.

In a separate announcement, the U.S. Attorney’s Office disclosed that both Farace and his father, Joseph Farace, had been sentenced to prison for money laundering conspiracy.

The government’s auction notice stated that anyone interested in claiming “interest in the forfeited property” could do so within 60 days.

This move follows a U.S. appeals court’s finalization of a mandate in December, formalizing the forfeiture of 69,370 Bitcoins related to the now-defunct Silk Road dark web market.

The “Silk Road” refers to an infamous online black market that was operational from 2011 until its shutdown by the FBI in 2013.

The marketplace was primarily known for the sale of illegal drugs, but it also featured other illicit goods and services.

What made Silk Road particularly notable was its use of Bitcoin as a means of