When the original Silk Road was shut down in October, the feds seized one of the biggest wallets ever, containing more than 29,600 Bitcoins — now worth around $25 million. At the time of the seizure they were worth six times less, around $4 million.
“These Bitcoins were forfeited not because they are Bitcoins, but because they were, as the court found, the proceeds of crimes,” said Manhattan U.S. Attorney Preet Bharara in a statement.
The prosecutors asked that the Bitcoins be forfeited “because those assets allegedly were used to facilitate money laundering and constitute property involved in money laundering,” the press release read.
At this point, it’s still unclear how or if the forfeited Bitcoins will be converted to cash, as the judge’s order of forfeiture simply gives prosecutors permission to liquidate them. Once they do, proceeds from the sale will go to the U.S. Treasury.
“We don’t have any guidance as to what we’re going to do with it now,” a spokesperson from the Manhattan U.S. Attorney’s office told Mashable. “We’re examining our options with respect to the forfeited Bitcoins and are considering a number of means of liquidating them.”