Silk Road creator Ross Ulbricht will see his $183 million debt to the U.S. government wiped out following the seizure of $3 billion in bitcoin.Read MoreFeedzy
Silk Road creator Ross Ulbricht will see his $183 million debt wiped following the seizure of $3 billion in bitcoin connected to an unnamed Silk Road hacker, according to a court filing.
In 2015, Ulbricht was sentenced to life in prison without parole. He was also ordered to pay $183 million in restitution, a figure calculated from the total illegal sales on Silk Road using an exchange rate at the time of each transaction.
Court documents in 2020 reveal that the DOJ seized 69,370 bitcoin from a hacker that moved the trove to a private wallet in April, 2013.
Ulbricht has been given a surprising reprieve, with the Justice Department making a deal with him in Feb. 2021 that forfeits any claim Ulbricht may have had to the stolen bitcoin, in exchange for the restitution to be repaid once the bitcoin is sold.
“The parties agree that the net proceeds realized from the sale of the [bitcoins] forfeited pursuant to this agreement shall be credited toward any unpaid balance of the Money Judgment,” the court filing reads.
There is currently no set date on when the auction for the seized bitcoins will take place.
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
The 8-K filing Monday says proceeds from the May 26-31 sale, executed at an average…
Crypto markets continue to struggle even as risk markets across the globe surge higher.Read MoreCoinDesk:…
Crypto analyst Blade has pointed to a Bitcoin trend that could signal when the leading…
Bitcoin and software equities have sharply diverged after moving in lockstep for years, raising questions…
Bitcoin and ether fell Monday after dropping in May, a month that usually sees them…
U.S. spot bitcoin ETFs lost $2.97 billion across 10 trading days through Friday, the longest…