Cryptocurrency, Fraud and Scams

DOJ seizes billions of crypto linking to Silk Road

On November 5, the US DOJ announced that it had filed a complaint to capture $1B worth of cryptocurrencies, in connection to Silk Road. In the said document, DOJ revealed that the seized funds that include over 69,370 BTC and equivalent amounts of Bitcoin Gold, BSV and Bitcoin Cash.

US DOJ seized the cryptocurrencies that were said to be obtained from an unnamed hacker referred to as “individual X” in the document. DOJ stated that the unknown individual has tried to hack the Silk Road and steal crypto from it. But the person has now agreed to give the funds last Monday. The document also revealed that the wallet address pertains to the hacker which read: 1HQ3Go3ggs8pFnXuHVHRytPCq5fGG8Hbh.

Explaining on the hacker’s involvement, DOJ’s document stated:

“Individual X, whose identity is known to the government […] According to an investigation conducted by the Criminal Investigation Division of the Internal Revenue Service and the U.S. Attorney’s Office for the Northern District of California, Individual X…moved the cryptocurrency from Silk Road.”

The investigation also noted that Individual X was able to hack into Silk Road and acquire unauthorized and illegal access to Silk Road and steal the illicit cryptocurrency from Silk Road and move into wallets.

Since 2014, the U.S. Marshals Service had auctioned about 175,000 bitcoins that were confiscated from Silk Road, its creator is now serving a double life imprisonment sentence after being guilty of money laundering, computer hacking, and conspiracy to traffic narcotics.

It is still unclear if the government will now auction the seized funds. But this development does add clarity to the earlier report that $1B worth of bitcoin was moving out of a bitcoin wallet to the mentioned address.

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