17 Jan 2014

$28 Million in Bitcoins Seized from Cyber Black Market

The US Attorney for the Southern District of New York announced today the seizure of some 30000 Bitcoins from the Silk Road server, according to a press release.

The $28 million worth forfeiture is part of a wide scale investigation on all Silk Road assets, after a civil action filed in September 2013 revealed that Bitcoins belonging to Silk Road were used in money laundering.

“With today’s forfeiture of $28 million worth of Bitcoins from the Silk Road website, a global cyber business designed to broker criminal transactions, we continue our efforts to take the profit out of crime and signal to those who would turn to the dark web for illicit activity that they have chosen the wrong path,” said Preet Bharara, US Attorney.

“These Bitcoins were forfeited not because they are Bitcoins, but because they were, as the court found, the proceeds of crimes.”

The US Court also charged Ross William Ulbricht, the alleged owner and operator of the Silk Road hidden website, with narcotics conspiracy, conspiracy to computer hacking and money laundering.

Launched in February 2011, Silk Road is a hidden virtual black marketplace accepting Bitcoins as a form of payment.