The U.S. government has seized more than $1 billion in bitcoin from previously undetected transactions linked to the Silk Road market and is presently looking for the forfeiture of their cryptocurrency.

US Confiscates $1 Billion in Bitcoin From Silk Road

The U.S. government has filed a lawsuit seeking the forfeiture of bitcoin now worth greater than $1 billion which it captured on Tuesday, according to the court record . The Department of Justice said on Thursday this bitcoin seizure is the biggest the U.S. has made. The”Defendant Property” captured includes bitcoin and its forked coins, which have been:

Approximately 69,370.22491543 bitcoin (BTC), bitcoin gold (BTG), bitcoin SV (BSV), bitcoin cash (BCH), obtained from 1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx.

Twitter bot @whale_alert flagged the trade on Tuesday, resulting in speculation of why the coins abruptly moved from the twisted wallet. These days, the puzzle is solved since it had been actually law enforcement moving the coins into some government-controlled wallet.

Adhering to the DOJ’s announcement, blockchain data analytics company Chainalysis clarified that”Law enforcement representatives utilized Chainalysis tools and investigative aid to recognize the most significant cryptocurrency pockets with links to Silk Road.” They examined”bitcoin trades executed by Silk Road and recognized 54 previously undetected bitcoin trades representing the proceeds of criminal activity. They also discovered a hacker, called Man X, stole those funds from Silk Road,” the company detailed.

The 54 trades, values 70,411.46 BTC, were shipped from the Silk Road’s bitcoin addresses to 2 bitcoin addresses, the court record clarifies, including that approximately 69,471.08 BTC were subsequently sent to 1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbhx. The court record describes the speech as”1HQ3″ for short.

Around 69,370 BTC stayed in 1HQ3 and have been then captured by the authorities.

The court record maintains that”Individual Xwhose identity is called the authorities” was in charge of this 1HQ3 address. The DOJ alleges that this individual”managed to hack Silk Road and obtain illegal and unauthorized access to Silk Road and thus steal the illegal cryptocurrency from Silk Road and transfer it into pockets that Individual X commanded.”

The government further alleges that Silk Road market founder Ross Ulbricht”became conscious of Personal X’s internet identity and jeopardized Person X for yield of their cryptocurrency into Ulbricht.” But,”Individual X didn’t reunite the cryptocurrency but maintained it did not spend it”

On November 3, 2020, the United States took custody of the Defendant Property from 1HQ3.

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