Victor Ugochukwu · Dec 14, 2020 . 5min read
Coinfirm claims the U.S. DOJ left behind tokens post Silk Road seizure
Coinfirm has claimed that after seizing digital assets from Silk Road, the U.S. DOJ left behind tokens which are worth millions of dollars.
By Komal Joshi · Nov 23, 2020 . 5min read
After the U.S. DOJ’s seizure of digital assets linked with the now non-existent Silk Road, Coinfirm, an analytics firm claims that the U.S. DOJ left behind tokens worth millions of dollars. In accordance with Coinfirm’s reports, there are still relevant balances held on forked addresses from that wallet.
For the uninformed, Silk Road’s founder, Ross Ulbricht was responsible for running Silk Road in February 2015. It involves planning to commit narcotics trafficking, conspiring to commit computer hacking, and money laundering. Moreover, he was consequently condemned to life imprisonment in May 2015 with no possibility of parole.
The U.S. DOJ seized 69,370 BTC from Silk Road.
However, the U.S. DOJ declared that a hacker known as Individual X had conspired with law enforcement, on Nov. 5. He abandoned control of around $1 billion worth of bitcoins. At the time of the capturing 69,370 BTC, the DOJ also insisted that address also incorporated approximately 69,370 BTG, BCH, and BSV. Individual X was responsible for the same.
Nevertheless, in its update after self-funded research, the analytics firm states that the U.S. government apparently ignored and dropped it in the palms of whoever has access to the private keys of the significant wallet. Further Coinfirm claims that the funds worth millions of dollars are still outstanding. However, it has only revealed data about tokens whose total value doesn’t surpass $1 million.
In accordance with the research, the U.S. DOJ left behind 693701 Bitcoin Diamond (BCD), 69370 Bitcoin Private (BTCP), and 69370 Super Bitcoin (SBTC). Moreover, after colluding with the U.S. authorities, Individual X walked away from the situation without encountering any criminal charges, states Coinfirm. However, we await to see if this recent revelation is true and is going to modify Individual X’s deal.
Meantime, Coinfirm claims that its cryptographic tracing trials have recognized dozens of cases in which law enforcement authorities may have unknowingly transmitted substantial funds available to suspects rather than adequately accounting for and seizing them.
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