Prosecutors emphasize that the Bitcoins were seized in connection with a probe of the online drug marketplace and not because they are Bitcoins. January 16, 2014 8:15 PM PST (Credit: Silver Underground) Federal prosecutors announced Thursday the forfeiture of $28 million in Bitcoin seized from Silk Road, an online marketplace that allowed the anonymous sale of illegal merchandise. Preet Bharara, the United States Attorney for the Southern District of New York, announced the forfeiture of 29,655 Bitcoins seized from Silk Road's server in connection with a civil forfeiture action against the online market place, which was seized by the FBI in October. Bharara emphasized that the Bitcoins had been seized in connection with the investigation and not the currency's unregulated and centralized nature. "These bitcoins were forfeited not because they are bitcoins, but because they were, as the court found, the proceeds of crimes," Bahara said in a statement. Related stories Sacramento Kings are first pro sports team to accept Bitcoin Yahoo malware turned PCs into Bitcoin miners Alibaba to forbid Bitcoin sales on its Web site The forfeiture order was signed Wednesday by U.S. District Judge J. Paul Oetken, according to the statement. Silk Road was an online drug marketplace where its nearly 1 million anonymous users could buy and sell all sorts of drugs using the secure Tor browser. The purchases were typically made with the virtual currency Bitcoin and sales are said to have totaled more than $1 billion, earning Ulbricht nearly $80 million, prosecutors said. A criminal complaint filed last September in Manhattan charged the alleged owner and operator of the online market place, Ross Ulbricht, with computer hacking conspiracy, narcotics trafficking conspiracy, and money laundering. In the days after Ulbricht's indictment, eight people in three different countries were arrested in connection with the sale of drugs on Silk Road.
Prosecutors emphasize that the Bitcoins were seized in connection with a probe of the online drug marketplace and not because they are Bitcoins.
(Credit: Silver Underground)
Federal prosecutors announced Thursday the forfeiture of $28 million in Bitcoin seized from Silk Road, an online marketplace that allowed the anonymous sale of illegal merchandise.
Preet Bharara, the United States Attorney for the Southern District of New York, announced the forfeiture of 29,655 Bitcoins seized from Silk Road's server in connection with a civil forfeiture action against the online market place, which was seized by the FBI in October. Bharara emphasized that the Bitcoins had been seized in connection with the investigation and not the currency's unregulated and centralized nature.
"These bitcoins were forfeited not because they are bitcoins, but because they were, as the court found, the proceeds of crimes," Bahara said in a statement.
Related stories
- Sacramento Kings are first pro sports team to accept Bitcoin
- Yahoo malware turned PCs into Bitcoin miners
- Alibaba to forbid Bitcoin sales on its Web site
The forfeiture order was signed Wednesday by U.S. District Judge J. Paul Oetken, according to the statement.
Silk Road was an online drug marketplace where its nearly 1 million anonymous users could buy and sell all sorts of drugs using the secure Tor browser. The purchases were typically made with the virtual currency Bitcoin and sales are said to have totaled more than $1 billion, earning Ulbricht nearly $80 million, prosecutors said.
A criminal complaint filed last September in Manhattan charged the alleged owner and operator of the online market place, Ross Ulbricht, with computer hacking conspiracy, narcotics trafficking conspiracy, and money laundering. In the days after Ulbricht's indictment, eight people in three different countries were arrested in connection with the sale of drugs on Silk Road.
