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News Link • Bitcoin

Feds stole my $33M bitcoins booty: Silk Road ‘pirate’

•, By Rich Calder

Ross Ulbricht — who was arrested in October for allegedly masterminding the mysterious “deep Web” site — recently filed legal papers in Manhattan federal court admitting he “has an interest as owner” of the more than 173,000 bitcoins the government seized through forfeiture from Silk Road.

Valued at $33.6 million, these bitcoins are assets the government claims were used to facilitate money laundering in support of a host of crimes, including six failed murder-for-hire plots and the sale of cocaine, heroin and other illicit drugs over the Internet.

Ulbricht — who allegedly used the workplace alias “Dread Pirate Roberts,” a reference to a character in the 1987 cult film “The Princess Bride” — said in a notarized Dec. 11 statement that he believes the virtual currency should be returned to him because bitcoins are “not subject to seizure” by federal law.

1 Comments in Response to

Comment by Ed Price
Entered on:

If  you have the Bitcoin wallet, you can see the Bitcoin addresses. If you have the addresses, you can query the blockchain for the true value. But if you don't have the passphrase, you can't spend the bitcoins.

Probably the only reason the pirate doesn't use hidden backup wallets to move the bitcoins out of Government control to other wallets is, he is being monitored too closely for such activity. Once he can get his hands on a computer when nobody is watching him, he just might move the bitcoins to other wallets that are not under Gov control.

Of course, when Gov sees the bitcoins gone, they will jump on him. He will need an alibi. He will at least need a good form of plausible deniability.

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