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Seized Silk Road Bitcoin to Clear Ross Ulbricht’s $183M Debt

Silk Road creator Ross Ulbricht will see his $183 million debt to the U.S. government wiped out following the seizure of $3 billion in bitcoin.Read MoreFeedzy

Silk Road creator Ross Ulbricht will see his $183 million debt wiped following the seizure of $3 billion in bitcoin connected to an unnamed Silk Road hacker, according to a court filing.

In 2015, Ulbricht was sentenced to life in prison without parole. He was also ordered to pay $183 million in restitution, a figure calculated from the total illegal sales on Silk Road using an exchange rate at the time of each transaction.

Court documents in 2020 reveal that the DOJ seized 69,370 bitcoin from a hacker that moved the trove to a private wallet in April, 2013.

Ulbricht has been given a surprising reprieve, with the Justice Department making a deal with him in Feb. 2021 that forfeits any claim Ulbricht may have had to the stolen bitcoin, in exchange for the restitution to be repaid once the bitcoin is sold.

“The parties agree that the net proceeds realized from the sale of the [bitcoins] forfeited pursuant to this agreement shall be credited toward any unpaid balance of the Money Judgment,” the court filing reads.

There is currently no set date on when the auction for the seized bitcoins will take place.

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