COURT DOC: U.S. Files a Civil Action to Forfeit Cryptocurrency Valued at Over One Billion U.S. Dollars
The United States filed a civil complaint today to forfeit thousands of Bitcoins, valued at over $1 billion dollars, seized by law enforcement on November 3, 2020.
In 2020 agents of the IRS CI used a third party bitcoin attribution company to analyze bitcoin transactions executed by Silk Road and were able to identify 54 previously undetected bitcoin transactions executed by Silk Road, all of which appear to represent bitcoin, which was the proceeds of unlawful activity, that was stolen from Silk Road in or about 2012 and 2013. The complaint alleges that these funds were traced to a bitcoin address. Further investigation of that bitcoin address by the United States Attorneys Office and IRS CI agents revealed that the funds were connected to Individual X. It was further determined that Individual X had hacked the funds from Silk Road. Pursuant to that investigation of the hack, law enforcement seized several thousand Bitcoins on November 3, 2020. On November 4, 2020, the seized Bitcoin had a value of over $1 billion. (Source: U.S. Department of Justice)