09 February 2016

Feds get go-ahead to sell $28 million bitcoin stash; eBay UK to open virtual currency category

17 January 2014  |  5247 views  |  2 bitcoins

The FBI has been given the go-ahead to liquidate up to $28 million worth of bitcoins seized during the shutdown of the Dark Web marketplace Silk Road.

Preet Bharara, the United States Attorney for the Southern District of New York, on Thursday approved the forfeiture of approximately 29,655 bitcoins that were swiped from the Silk Road server in September last year.

At the time of the raid, the Government also seized an additional 144,336 Bitcoins (worth over $130 million) that were found on computer hardware belonging to Silk Road founder Ross William Ulbricht.

Ulbricht continues to thwart the attempts of the Feds to liquidate his assets, using the courts to contest the forfeiture of the bitcoins by asserting that he is the rightful owner of the stash.

The FBI has yet to give a timeline for the sale of the bitcoins in its possession, sparking fears among holders of the crypto-currency that a sudden sell-off could lead to more volatility in the exchange rate and downward pressure on prices.

Both eBay president John Donahoe and PayPal president David Marcus have become vocal supporters of the virtual currency movement in recent months. In November, Donahoe told the FT that PayPal could one day incorporate bitcoins, describing the interest in digital currencies as a "very powerful thing".

Comments: (2)

A Finextra member | 20 January, 2014, 09:27

So, of the 12 million bitcoins in existence, this illegal site has 1.5% of them. Not sure what cut they take of sales, but say it's a tenth - that means that at least 15% of bitcoins are used for criminal reasons.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Barry Mac - LSE - London | 22 January, 2014, 21:03

Compare that 28m to the amount of money in old fashioned (much more untraceable) cash used by organised crime. "2.7 per cent of global GDP"


The bitcoin system is a public ledger. https://blockchain.info/address/1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX 


Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

16 January, 2014
09 January, 2014
06 January, 2014
02 January, 2014
18 December, 2013
16 December, 2013
11 December, 2013
10 December, 2013
05 December, 2013
27 November, 2013
03 October, 2013

Top topics

Most viewed Most shared
Fintech rising: Resistance is futile, says...
11607 views comments | 51 tweets | 44 linkedin
Digital transformation driving earnings at...
10010 views comments | 47 tweets | 40 linkedin
Visa opens up to developers
8211 views comments | 23 tweets | 41 linkedin
ECB eyes up European P2P payments
8062 views comments | 29 tweets | 39 linkedin
It may take ten years, but blockchain tech...
6885 views comments | 21 tweets | 19 linkedin

Featured job

Brussels (Belgium) or Paris (France)

Find your next job