U.S. Intends to Liquidate $117 Million Worth of Bitcoin Confiscated from Drug Trafficker Farace
The U.S. government has made an announcement stating that it intends to dispose of around 2,875 Bitcoins that were seized in 2021 from individuals involved in illegal activities. The value of the cryptocurrency, which was approximately $133 million at the time, will be handled as directed by the United States Attorney General.
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Details and Legal Notice
The forfeiture notice, which is dated January 8, 2024, is related to the case of U.S. v. Joseph Farace (Court Case Number: 21-CR-00294). The forfeited Bitcoins, which amount to over $133 million, were confiscated from Ryan Farace and Sean Bridges in Memphis, TN, and Arlington, VA, respectively. The government has invited individuals, excluding the defendants, to claim an interest in the forfeited property within 60 days.
Silk Road Connection
Ryan Farace, who was charged in 2018 for illegally selling Xanax on the dark web, used Bitcoin for his transactions. The recent filing outlines the government’s plan to sell the confiscated cryptocurrency following the convictions of Farace and his father Joseph Farace for money laundering conspiracy.
The plea deal revealed that Ryan Farace, also known as “Xanaxman,” operated on the infamous Silk Road dark web marketplace. The U.S. government’s decision to sell the bitcoins is similar to a recent appeals court ruling that finalized the forfeiture of 69,370 bitcoins linked to the Silk Road.
Also Read:
OneCoin Fraudster Mark Scott Sentenced to 10 Years in Prison for Laundering $400 Million
In Conclusion
As the U.S. government prepares to liquidate the seized Bitcoins, market observers are closely watching the potential impact of a large-scale sale by the government in the cryptocurrency market. Previous instances have led to speculation about price fluctuations, highlighting the significance of government-held cryptocurrency in the broader market dynamics.
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