The US Government transferred Bitcoins seized from an illegal online marketplace Silk Road to other accounts.
The US Government moved most of the Bitcoin it seized from the hacker James Zhong, who infiltrated the Silk Road marketplace, that is, transferred it to different addresses. On-chain data shows that a Bitcoin address named “US Department of Justice” transferred a total of 9,825 BTC to various addresses. This corresponds to a huge amount of 302 million dollars. The US government announced 51,351 BTC seized from James Zhong in March. Bitcoin was seized from Zhong at his home in Georgia in November 2021, and the BTC stack was worth $3.6 billion at the time. Reports indicate that Zhong pleaded guilty to wire mesh fraud charges.
Roger Thomas Clark sentenced to 20 years in prison
As the US government moves the multi-million dollar pile of BTC, the US Southern District Attorney General announced that Roger Thomas Clark, senior adviser to Silk Road marketplace, has been sentenced to 20 years in prison. These events took place on the same day. According to the Justice Department website, Clark was convicted of “attempting to distribute massive amounts of drugs” for his role as Ross Ulbricht’s (alias “Dread Pirate Roberts”) senior adviser to the owner and operator of “Silk Road.”
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Clark was born in 1979 and grew up in Florida. Clark was an engineer with a background as a hacker. Clark met Silk Road founder Ross Ulbricht in 2011 and became a consultant for the marketplace. Clark oversaw Silk Road’s security and operations. But he was arrested in the operation that followed.
Silk Road was an illegal online marketplace
Silk Road was a clandestine online marketplace for illegal drugs, hacking services, and a host of other criminal activities. It was founded in 2011 and was closed in 2013. Silk Road founder and operator Ross Ulbricht was sentenced to life in prison in 2015. As a result, the US government moving the seized Bitcoins from Silk Road could be a sign of the collapse of this digital drug empire. The fact that Roger Thomas Clark was sentenced to 20 years in prison is a reminder that using online marketplaces for illegal activities has serious consequences.