FBI to Sell Silk Road stash, but not Ulbrights personal bitcoins

Silk_Road_Seized

The United States Attorney for the Southern District of New York announced today that they will sell about $28 million dollars worth of bitcoins (29,655 bitcoins in total), which they seized from the Silk Road in Sept 2013, an action which further legitimizes the currency.  There is no word yet on what will happen to the bitcoins seized from the personal wallets of Ross Ulbricht, AKA Dread Pirate Robert the second, the man who was running Silk Road when it was raided by the FBI.  This could mean one of two things.  The official statement released by the United States Attorney for the Southern District of New York states that “Ulbricht has filed a claim in the civil forfeiture action, asserting that he is the owner of the Bitcoins found on his computer hardware, and contesting the forfeiture of those Bitcoins.”  However, it’s possible that the FBI just doesn’t have access to Ulbrichts personal hoard.  If Ulbricht was practicing good security measures and either memorized his private keys or printed them out and hid them without ever keeping the private keys on an internet connected computer, the FBI would have no way of accessing his bitcoins.

Read the official release here:

http://www.justice.gov/usao/nys/pressreleases/January14/SilkRoadForfeiture.php

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