In a groundbreaking move, the United States has announced plans to auction approximately $117 million worth of Bitcoin seized from a convicted drug trafficker involved in the notorious Silk Road dark web marketplace. The forfeiture notice, made public earlier this month, reveals the government’s intention to ‘dispose’ of the cryptocurrency following the sentencing of 38-year-old Ryan Farace and his 72-year-old father Joseph Farace, both residents of Maryland, on charges of money laundering conspiracy.
The United States Department of Justice reported the recovery of over 2,933 Bitcoins, currently valued at about $117 million, from the Farace family. Initially, the government had estimated the value at approximately $133.5 million when the forfeiture notice was published on January 10.
related: Silk Road’s Bitcoin Legacy: Billionaire Tim Draper Still Holds 29,600
Ryan Farace’s criminal activities date back to 2018 when he was convicted for a scheme to manufacture and sell Xanax pills through dark web marketplaces, including the Silk Road, under the pseudonym Xanaxman. Notably, Farace received over 9,138 Bitcoins for these transactions, amounting to around $364 million at the time of writing.
While Farace had forfeited a mere 24 Bitcoins in 2020, claiming a lack of access to additional funds, a startling revelation came to light during his incarceration. In 2020, he instructed his father, Joseph Farace, to transfer 2,874 Bitcoins to a third-party accomplice to move the funds out of the United States. Both Ryan and Joseph admitted to these actions in their plea agreements.
Ryan Farace faced additional legal consequences on January 5, receiving a 54-month federal prison sentence. Simultaneously, his father, Joseph Farace, was sentenced to 19 months in federal prison on January 8, with an additional two years of supervised release.
related: Silk Road’s Shadow: Ross Ulbricht’s Ten-Year Incarceration
The decision to auction the seized Bitcoins follows a pattern of the U.S. government’s increasing interest in dealing with cryptocurrency-related crime. By liquidating the seized assets, authorities aim to prevent the illicit use of the funds and further reinforce the consequences for those engaged in illegal activities within the digital realm.
The upcoming auction is expected to attract considerable attention from cryptocurrency enthusiasts and investors alike, offering a unique opportunity to acquire a substantial amount of Bitcoin with a storied history. The funds generated from the auction will likely be directed towards supporting law enforcement efforts and other initiatives combatting cybercrime.
As the cryptocurrency landscape continues to evolve, this development underscores the government’s commitment to holding individuals accountable for illicit activities in the digital sphere, sending a clear message about the consequences of engaging in criminal behavior involving cryptocurrencies.