US Government to Sell Bitcoin Seized from Dark Web Dealer
Originally published on: Bitcoin News
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January 09, 2018
The US government has been approved by a federal judge in Utah to sell 513 Bitcoin and 512 Bitcoin Cash seized from an investigation involving Aaron Michael Shamo, a dark web dealer.
513 Bitcoin and 512 Bitcoin Cash
The U.S government is expected to sell all crypto assets of Aaron Michael Shamo（Shamo）following his recent arrest, including approx. $10 million worth of Bitcoin (BTC) and Bitcoin Cash (BTC).
On May 31, 2017, Shamo along with other dark web operators including Drew Wilson Crandall, Mario Anthony Noble, and Sean Michael Gygi were found guilty of conspiracy to distribute a controlled substance, aiding the importation of a controlled substance, intentional adulteration of drugs, use of the US mail in drug trafficking, conspiracy to commit money laundering, and engaging in monetary transaction in property derived from specified unlawful activity.
When the dark web operators were found guilty of the charges filed by the FBI, the Bitcoin and Bitcoin Cash holdings of the criminals were seized and moved to the custody of the United States Marshals Service (USMS).
The US government expressed its concerns over the high volatility rate of the crypto assets, suggesting they would rather sell the coins instead. Moreover, the US government stated that it is costly to securely store the seized coins in the official court document released and approved by Utah district judge Dale A. Kimball.
The vehicles (BTC and BCH) have been seized and are in the custody and control of the United States Marshals Service. Every month, the USMS is accruing $465 per month in storage fees for these vehicles. The total expenses for these two vehicles currently is $5,010.70.
How US Government Lost $2.36 Billion
Last October, it was disclosed that the US government sold 144,336 BTC at a price of $336 per bitcoin after shutting down the Silk Road. The total value of the seized coins were sold at $48.5 million. Had the government possessed them in patience, however, they would be worth $2.4 billion at current value.
In the next few weeks, the US government is expected to proceed with the sale of the 513 BTC and 512 BCH at the current value of around $9.4 million.
What do you think of the selling? What will be the opportunity cost if they’d instead hold for another three years?
Images via Shutterstock.