USA Seizes Bitcoin (BTC) Worth Several Billion Linked to Silk Road

The US Department of Justice has announced the seizure of $3.36 billion worth of Bitcoin (BTC) linked to the Silk Road black market.

In the seizure of a whopping 50,676 BTC, defendant James John pleaded guilty to illegally obtaining the cryptocurrency, the DOJ (Department of Justice) announced in a press release on Nov. 7.

John, who is accused of stealing bitcoin from the Silk Road marketplace, allegedly took elaborate measures to conceal the proceeds.

At the time, that seizure was the largest cryptocurrency seizure in U.S. Department of Justice history and remains the second largest financial seizure in the department’s history.

Allegedly in September 2012, John used a trading scheme to defraud the Silk Road of BTC without offering or buying actual products on the market. The black market was frequently used to trade drugs and other illegal goods before its founder Ross Ulbricht was sentenced to life in prison in 2015.

By quickly triggering more than 140 consecutive transactions, John duped Silk Road’s withdrawal system to release 50,000 tokens into his numerous accounts while maintaining anonymity, according to the Justice Department.

Tracking cryptocurrencies

According to Damian Williams, U.S. Attorney for the Southern District of New York, the crime was committed nearly a decade ago, as the whereabouts of the missing BTC are unknown. However, with a search warrant, the government seized the assets in John’s apartment on November 9, 2021.

Thanks to state-of-the-art cryptocurrency tracking methods and good old-fashioned police work, law enforcement was able to find and seize this impressive amount of proceeds of crime. This case shows that we won’t stop tracking the money, no matter how cleverly it’s hidden.

After John pleaded guilty to bank fraud, the 32-year-old now faces up to 20 years in prison.

Author

Andrey Kunev

Reporter at CoinsPress

Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.