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US Government Set to Sell $117M in Bitcoin Seized From Convicted Silk Road Drug Trafficker

American Authorities to Dump $117M in BTC

The American government has announced that it will sell Bitcoin worth $117 million after seizing it from a drug trafficker, Ryan Farace, who ran the now-closed dark web marketplace Silk Road. The latest announcement comes a few weeks after Joseph Farace and his son Ryan were charged with money laundering.

The involved US authorities say they will dispose of the seized Bitcoin after receiving instructions from the Attorney General’s office. Moreover, they have given people other than the Farace family 60 days to submit a petition to the court claiming their interest in the forfeited Bitcoin.

In the event no petition is filed after the expiry of the 60-day period, the US government shall become the owner of the Bitcoin and will have the right to transfer ownership rights to any subsequent buyer.

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According to the Department of Justice, the US government managed to recover more than 2,925 BTC from Joseph and Ryan on January 10th. At the time, the seized Bitcoin was worth $133 million, but given the recent negative performance of the coin, it is now valued at $117 million.


Ryan’s Previous Charges

In 2018, Ryan Farace was convicted for producing and distributing Xanax pills via dark web marketplaces. The United States says he collected over 9,000 Bitcoin from his venture before being arrested. In 2020, Ryan forfeited only 24 BTC, claiming he had lost access to the remaining coins.

However, the American authorities later discovered that he had instructed Joseph to move the additional BTC out of the US by transferring it to an accomplice living overseas. Ryan and his father admitted this action when signing plea agreements in 2021, and he was charged with money laundering that year.

Court Rules on Ryan and Joseph’s Sentencing

At the start of 2024, the court ruled that Ryan would stay in federal prison for four more years. Joseph, on the other hand, was sent to prison for 19 months on January 8th. He will be subject to supervised release when he is out of jail.

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Andrew Richard

Andrew is a news writer for Tokenhell, he enjoys tuning in to the daily crypto markets and writing about the latest updates and happenings.

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