U.S. Government Is Turning Seized Silk Road Bitcoins Into Cash

Next Story

AOL Says Spoofed Emails Appeared To Come From 2% Of Accounts, No Financial Info Affected

As I noted in January, the U.S. government is quite interested in getting out of the Bitcoin business and has, thus far, been working hard to convert seized bitcoin to actual cash, a move that could affect the BTC markets if these large transactions happen

For example, this press release by the Department of Justice outlines how they caught alleged Silk Road user Conrnelis Jan Slomp in Miami last August. Buried in the release is a description of his sentencing:

Upon conviction, he faces a mandatory minimum of five years and a maximum of 40 years in prison and a $5 million fine, and the Court must impose a reasonable sentence. The government is also seeking forfeiture of approximately $3,030,000 in alleged proceeds from Slomps’ drug trafficking. The government seized the equivalent of that amount in bitcoins, a digital currency, and exchanged it for cash.

Bitcoin fans have yet to find the cache and where or when it was moved for exchange. However, given that Slomp was arrested last year it may be difficult to find the transactions on the blockchain if they happened slowly over time. Slomp lost the bitcoins in a civil asset forfeiture after being charged with distributing illegal drugs worldwide.