Silk Road, does that speak to you? This is the story of one of the greatest crypto hacks in history! The Silk Road is in the news again. Indeed, we have just learned that part of the bitcoins stolen (and since found) will be used to repay the debt of Ross Ulbricht.
The Silk road hack and its creator Ross Ulbricht
Before discussing Ross Ulbricht’s debt repayment, a brief background is needed. Silk Road is a website that was very successful in 2012 and 2013. Created by Ross Ulbricht, this website allowed the purchase and sale of many products (including illicit products). To circumvent the legislative framework, the site operated on the Dark Web and payments were made in bitcoins .
The site has been a huge success. With the surge in the price of Bitcoin, its creator quickly got rich. But in 2013, it’s the fall! Ross Ulbricht is arrested and imprisoned. In 2015, Ross Ulbricht was tried and sentenced to life. His appeal was denied along with his more recent request for a presidential pardon from former President Donald Trump.
But the story didn’t end there! Like the watered sprinkler, his bitcoin fortune was later stolen by a hacker! However, the hacker did not spend the stolen bitcoins but kept them on several wallets.
Stolen Silk Road bitcoins seized by US government
The crypto wallet was eventually found by US authorities. In November 2020, the US Department of Justice seized the contents of this wallet. The hacker was known as “ Individual X ”.
In total, the wallet contained 69,370 bitcoins and Bitcoin Gold (BTG), Bitcoin SV (BSV) and Bitcoin Cash (BCH). With the current price of Bitcoin, this therefore represents a sum of 2.7 billion dollars which is in the hands of the American government. Since then, the feds have carefully watched over their bitcoin hoard by protecting it against any cyberattack.
The story of the Silk Road and its hack was taken to the cinema in the film “Silk Road” available on Prime video.
Bitcoins will be used to repay Ross Ulbricht’s debt
But what will the US government do with such a seizure? A few days ago, the American justice decided to use part of these bitcoins to pay off Ross Ulbricht’s debt. Indeed, before being stolen, these bitcoins belonged to Ross Ulbricht. With his legal setbacks, Ross Ulbricht is indebted to the tune of 183 million dollars to the American government!
This deal contracted between Ross Ulbricht and the American government would be associated with a condition. Indeed, Ross Ulbricht will have to give up his right of ownership over the bitcoins. The rest of bitcoins are expected to return to the market at federally-organized auctions.