After reading the title, one might be confused, but the US government is experiencing a comparable situation. The bitcoins confiscated from the Silk Road scam are being sold by the US government for dollars. And in the cryptosphere, this has given rise to a new jest.
What is Silk Road Scam?
The Silk Road - It was a private bitcoin-only marketplace established by American black marketeer Ross Ulbricht on the Tor network. It was notorious for being a center for illicit drugs. The FBI discovered it in 2013, but it persisted until 2015, when the FBI apprehended everyone involved.
- James Zhong, a hacker was involved in hacking of more than 50k Bitcoins (then valued at $3.3b, which were used in the Silk Road. James Zhong was later arrested, he pleaded guilty and was awarded 10 years jail.
Confiscated Silk Road Bitcoins for sale
The US government is selling James Zhong's stolen bitcoins for US dollars in an effort to liquidate them. On March 14th, the first of these "liquidates" took place, and the procedure is still ongoing.
