US Government to Sell $117 Million Worth of Seized Bitcoin from Silk Road Drug Trafficker

According to Decrypt, the United States has announced plans to sell approximately $117 million worth of Bitcoin seized from a convicted drug trafficker who operated on the now-defunct Silk Road dark web marketplace. A forfeiture notice from earlier this month is now available online, stating the government's intention to 'dispose' of the cryptocurrency. The notice comes after the sentencing of 38-year-old Ryan Farace and his 72-year-old father Joseph Farace, both of Maryland, on charges of money laundering conspiracy. The United States Department of Justice reports that over 2,933 Bitcoin, valued at about $117 million today, were recovered from the Farace family. The government had listed the approximate value at about $133.5 million when the forfeiture notice was published on January 10. Ryan Farace was previously convicted in 2018 for a scheme to manufacture and sell Xanax pills through dark web marketplaces like Silk Road under the pseudonym Xanaxman. He ultimately received over 9,138 Bitcoin for such transactions, worth approximately $364 million at the time of writing. Farace forfeited just 24 Bitcoin in 2020, claiming he no longer had access to additional funds. However, while incarcerated in 2020, Ryan Farace instructed his father Joseph to transfer 2,874 Bitcoin to a third party accomplice to move the funds out of the United States. The pair admitted to these actions in their plea agreements. Ryan was indicted for the charges in 2021. Ryan Farace was sentenced to an additional 54 months in federal prison on January 5, while Joseph Farace was sentenced to 19 months in federal prison on January 8, with two years of supervised release to follow.