Silk Road Founder Agrees to Use Seized Bitcoin Worth $3Bn to Clear off $183m debt to US government

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According to a tribunal filing archetypal reported by Wired media outlets, astir $3 cardinal worthy of seized Bitcoin successful transportation to an unnamed Silk Road hacker volition beryllium utilized to absolve Ross Ulbricht of his $183 cardinal indebtedness to the US government.

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Ulbricht is the laminitis of the now-defunct online amerciable cause marketplace ‘the Silk Road,’ which utilized Bitcoin to facilitate the merchantability of respective amerciable items similar drugs, weapons, and different amerciable items.

The Silk Road marketplace is commonly recognized arsenic the archetypal acheronian web marketplace, which started its operations successful 2011. In 2014, the FBI seized the marketplace and arrested its laminitis Ross William Ulbricht (a.k.a. Dread Pirate Roberts). But earlier the FBI unopen down the tract successful 2015, the marketplace was hacked by idiosyncratic who made disconnected with 69,370 BTC.

After the tract was shuttered down successful 2015, the authorities convicted Ulbricht for a scope of crimes, including machine hacking and sentenced him to beingness successful situation without parole. As a result, Ulbricht was ordered to wage $183 cardinal successful restitution related to Silk Road’s full sales.

In November 2020, the authorities seized the hacker’s 69,370 BTC. In 2021, the Justice Department made a woody with Ulbricht which saw him forfeit immoderate assertion helium mightiness person to the funds. In exchange, the section volition usage the recovered Bitcoins to wage his restitution erstwhile the cryptocurrency is auctioned. Currently, determination is nary acceptable day connected erstwhile the auction for the seized Bitcoin volition instrumentality place.

Silk Road's Moral Complexity

Silk Road was known arsenic the spot to spell to broker murder-for-hire, kid pornography, amerciable drugs, and malware – specified arsenic keyloggers, password stealers, and distant entree tools. The marketplace utilized Bitcoin arsenic its currency and Tor for anonymity.

Silk Road had much than 100,000 buyers and was capable to launder hundreds of millions of dollars derived from illicit transactions. At the clip of its takedown, Silk Road had astir 13,000 listings for controlled substances and galore much listings offering amerciable services, specified arsenic execution for hire, machine hacking and others, which translated into commissions of 600,000 Bitcoin and income of 9.5 cardinal Bitcoin.

Although Silk Road utilized blockchain to obscure the wealth way and discourage tracking, the US authorities authorities utilized a third-party Bitcoin attribution steadfast and were yet capable to hint the allegedly stolen funds to Bitcoin addresses owned by hackers.

Image source: Shutterstock

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