US authorities stuck with $25m bitcoin hoard, seized from the Silk Road

The stash was taken from the servers of the Silk Road - a website for selling illegal wares that traded in bitcoin and was shut down last October

Federal attorneys in the US have been run into difficulty after signing a forfeiture order for bitcoins worth more than £15 million ($25m) seized the servers of the closed Silk Road website.

Following the signing of the order the US authorities are now free to dispose of the 29,655 bitcoins in any way they please but are faced by a lack of legal options.

There is no legally-certified exchange for bitcoins in the US at and Mt Gox, perhaps the best-known global exchange, has already faced legal trouble in America for operating without a licence.  

A spokesperson for the Manhattan US Attorney Office said that they have “not yet determined exactly how the bitcoins will be converted and liquidated,” although it’s thought that the currency could be auctioned off, as is standard for getting rid of assets seized from criminals.

In this case all proceeds would go towards the US Treasury and with this in mind it might be sensible for the authorities to sit on their trove for a bit longer. Thanks to rocketing exchange rates the bitcoins are now worth four times their value when they were seized.

Read more: The end of the Silk Road - the FBI sting that caught the world’s biggest online drug dealer

Oddly, the bitcoins taken from the servers of the Silk Road are not the US government’s largest problem. A far bigger stash of 144,000 coins was found on the personal hardware of Ross Ublricht, the man charged with masterminding the Silk Road.

At today’s exchange rate these coins are worth just under $120 million, making the FBI the holder of the world’s largest bitcoin wallet – the standard ‘account’ for the cryptocurrency.

However, reports from tech site Wired suggest that although this stash is bigger than that belonging to prominent investors such as the Winklevoss twins, this still wouldn’t make the agency the world’s largest holder of bitcoins outright.

This honour is thought to belong to the currency’s clandestine inventor, an individual known as Satoshi Nakamato who is thought to have mined more than one million bitcoins in the currency’s early days, spreading out this wealth among several wallets to protect against theft.

News
people

Top Gear presenter is no stranger to foot-in-mouth controversy

Life and Style
Jamie Oliver’s version of Jollof rice led thousands of people to post angry comments on his website
food + drink
Arts and Entertainment
glastonbury
News
Apple CEO Timothy Cook
peopleAnti-LGBT campaigner Vitaly Milonov suggested Tim Cook could bring 'Aids or gonorrhea' to Russia
PROMOTED VIDEO
Life and Style
ebooksA superb mix of recipes serving up the freshest of local produce in a delicious range of styles
Life and Style
ebooksFrom the lifespan of a slug to the distance to the Sun: answers to 500 questions from readers
Life and Style
Taste the difference: Nell Frizzell tucks into a fry-up in Jesse's cafe in east London
food + drinkHow a bike accident left one woman living in a distorted world in which spices smell of old socks and muesli tastes like pork fat
Sport
Luke Shaw’s performance in the derby will be key to how his Manchester United side get on
footballBeating City is vital part of life at United. This is first major test for Shaw, Di Maria and Falcao – it’s not a game to lose
Arts and Entertainment
Don’t send in the clowns: masks and make-up conceal true facial expressions, thwarting our instinct to read people’s minds through their faces, as seen in ‘It’
filmThis Halloween, we ask what makes Ouija boards, demon dolls, and evil clowns so frightening?
News
peopleFarage challenges 'liberally biased' comedians to 'call him a narcissist'
Arts and Entertainment
Liam and Zayn of One Direction play with a chimpanzee on the set of their new video for 'Steal My Girl'
music
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Gadgets & Tech

    Sales Consultant – Permanent – West Sussex – £24-£25k plus commission and other benefits

    £24000 - £25000 Per Annum plus company car and commission: Clearwater People S...

    Marketing Account Manager / Client Liaison Manager

    £25 - 32k DOE: Guru Careers: A digital-savvy Marketing Account Manager / Clien...

    Business Development Manager / Sales Executive

    £23-30k (DOE) + Bonus: Guru Careers: We are seeking bright Business Developmen...

    Inside Sales Manager – SaaS based solutions

    25-30k + Comms + Benefits: Sphere Digital Recruitment: A rapidly expanding tag...

    Day In a Page

    The drugs revolution starts now as MPs agree its high time for change

    The drugs revolution starts now as MPs agree its high time for change

    Commons debate highlights growing cross-party consensus on softening UK drugs legislation, unchanged for 43 years
    The camera is turned on tabloid editors in Richard Peppiatt's 'One Rogue Reporter'

    Gotcha! The camera is turned on tabloid editors

    Hugh Grant says Richard Peppiatt's 'One Rogue Reporter' documentary will highlight issues raised by Leveson
    Fall of the Berlin Wall: It was thanks to Mikhail Gorbachev that this symbol of division fell

    Fall of the Berlin Wall

    It was thanks to Gorbachev that this symbol of division fell
    Halloween 2014: What makes Ouija boards, demon dolls, and evil clowns so frightening?

    What makes ouija boards and demon dolls scary?

    Ouija boards, demon dolls, evil children and clowns are all classic tropes of horror, and this year’s Halloween releases feature them all. What makes them so frightening, decade after decade?
    A safari in modern Britain: Rose Rouse reveals how her four-year tour of Harlesden taught her as much about the UK as it did about NW10

    Rose Rouse's safari in modern Britain

    Rouse decided to walk and talk with as many different people as possible in her neighbourhood of Harlesden and her experiences have been published in a new book
    Welcome to my world of no smell and odd tastes: How a bike accident left one woman living with unwanted food mash-ups

    'My world of no smell and odd tastes'

    A head injury from a bicycle accident had the surprising effect of robbing Nell Frizzell of two of her senses

    Matt Parker is proud of his square roots

    The "stand-up mathematician" is using comedy nights to preach maths to big audiences
    Paul Scholes column: Beating Manchester City is vital part of life at Manchester United. This is first major test for Luke Shaw, Angel Di Maria and Radamel Falcao – it’s not a game to lose

    Paul Scholes column

    Beating City is vital part of life at United. This is first major test for Shaw, Di Maria and Falcao – it’s not a game to lose
    Frank Warren: Call me an old git, but I just can't see that there's a place for women’s boxing

    Frank Warren column

    Call me an old git, but I just can't see that there's a place for women’s boxing
    Adrian Heath interview: Former Everton striker prepares his Orlando City side for the MLS - and having Kaka in the dressing room

    Adrian Heath's American dream...

    Former Everton striker prepares his Orlando City side for the MLS - and having Kaka in the dressing room
    Simon Hart: Manchester City will rise again but they need to change their attitude

    Manchester City will rise again but they need to change their attitude

    Manuel Pellegrini’s side are too good to fail and derby allows them to start again, says Simon Hart
    Isis in Syria: A general reveals the lack of communication with the US - and his country's awkward relationship with their allies-by-default

    A Syrian general speaks

    A senior officer of Bashar al-Assad’s regime talks to Robert Fisk about his army’s brutal struggle with Isis, in a dirty war whose challenges include widespread atrocities
    ‘A bit of a shock...’ Cambridge economist with Glasgow roots becomes Zambia’s acting President

    ‘A bit of a shock...’ Economist with Glasgow roots becomes Zambia’s acting President

    Guy Scott's predecessor, Michael Sata, died in a London hospital this week after a lengthy illness
    Fall of the Berlin Wall: History catches up with Erich Honecker - the East German leader who praised the Iron Curtain and claimed it prevented a Third World War

    Fall of the Berlin Wall

    History catches up with Erich Honecker - the East German leader who praised the Iron Curtain and claimed it prevented a Third World War
    How to turn your mobile phone into easy money

    Turn your mobile phone into easy money

    There are 90 million unused mobiles in the UK, which would be worth £7bn if we cashed them in, says David Crookes