Manhattan U.S. Attorney Announces Forfeiture of $28 Million Worth of Bitcoins Belonging to Silk Road
Silk Road was a website that sold anything, including illegal drugs, porn and, well, anything, in exchange for the virtual currency, Bitcoins. Such purchases were largely anonymous, since the Bitcoin system does not identify users by name or location.
The dimbulb operators of the site based it in the USA, so it wasn’t long before the G-men came knocking at their doors, shut down Silk Road and seized their assets. Now, the US government has the curious distinction of owning one of the largest collections of Bitcoins in the world.
Preet Bharara, the United States Attorney for the Southern District of New York, today announced the forfeiture of approximately 29,655 Bitcoins (which, at today’s Bitcoin exchange rate, are worth approximately $28 million) that were seized from the Silk Road server, as well as the forfeiture of the Silk Road hidden website. The Silk Road hidden website and the Bitcoins that were forfeited yesterday had been seized in connection with the civil forfeiture action previously filed in Manhattan federal court on September 30, 2013, seeking the forfeiture of all assets of Silk Road, including its website and all of its Bitcoins because those assets allegedly were used to facilitate money laundering and constitute property involved in money laundering
Here’s a hint to future “anything goes” online clearinghouses. Base your operations and house your servers offshore. Just sayin’.