The redneck sex videosU.S. government is trying to seize what "Individual X" had already stolen. Specifically, that would be a gargantuan amount of cryptocurrency.
In a surprise reveal to a mystery that's bedeviled the cryptocurrency community for years, the Department of Justice announced today that it has seized just over a billion dollars worth of cryptocurrency and is seeking to claim it as its own. What's more, in a criminal complaint arguing for the government's right to hold onto the seized digital currency, law enforcement revealed the cryptocurrency's source: It was stolen years ago from the Silk Road.
The details in the criminal complaint are wild, and worth breaking down. According to law enforcement, sometime in either 2012 or 2013, when the Silk Road illegal darknet market was up and operational, a person the government calls "Individual X" hacked into the online bazaar known for drugs and fake IDs (among other, less pleasant, offerings) and stole large amounts of bitcoin.
"According to the investigation, [Silk Road founder Ross Ulbricht] became aware of Individual X's online identity and threatened Individual X for return of the cryptocurrency to Ulbricht," the complaint states. "Individual X did not return the cryptocurrency but kept it and did not spend it."
Notably, it was a lot of cryptocurrency to simply not spend. According to the complaint, we're talking about "approximately" 69,370 bitcoin, 69,370 bitcoin gold, 69,370 bitcoin SV, and 69,370 bitcoin cash.
As of today, those different cryptocurrencies combined come out to around $1,066,389,000. In other words, this amounts to the largest government seizure of cryptocurrency we've seen to date.
"The successful prosecution of Silk Road's founder in 2015 left open a billion-dollar question," U.S. Attorney David L. Anderson is quoted as saying in a DOJ press release. "Where did the money go? Today's forfeiture complaint answers this open question at least in part."
Officials reportedly seized the stolen cryptocurrency on Nov. 3, and moved it into a wallet they controlled — sparking a flurry of news coverage in the process. According to the DOJ press release, the investigation was carried out by the Internal Revenue Service's Criminal Investigation Cyber Crimes Unit. The IRS had help from two companies, Chainalysis and Excygent, in tracking down Individual X. Chainalysis in particular is known for its ability to track cryptocurrency transactions.
The speculation as to who moved the money is now officially over. And while the public remains in the dark as to the identity of Individual X, the government definitely knows. Maybe that's why Individual X decided to play nice with law enforcement.
SEE ALSO: Verified 'Elon Musk' Twitter account celebrates election with crypto scam
"On November 3, 2020, Individual X signed a Consent and Agreement to Forfeiture with the U.S. Attorney's Office, Northern District of California," reads the complaint. "In that agreement, Individual X, consented to the forfeiture of the Defendant Property to the United States government."
Easy come, easy go.
Topics Bitcoin Cryptocurrency
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