US plans to dispose of $117 million worth of Bitcoin seized from drug dealer Farace

The U.S. government has announced its intention to dispose of approximately 2,875 bitcoins seized in 2021 from individuals involved in illegal activities. At the time of application, approximately $133 million worth of cryptocurrency will be processed under the direction of the U.S. Attorney General.

Details and Legal Notices

The January 8, 2024 Notice of Forfeiture concerns the case of US v. Joseph Farace (Court Case No. 21-CR-00294). The confiscated Bitcoin, totaling over $133 million, was seized from Ryan Farace and Sean Bridges in Memphis, Tennessee, and Arlington, Virginia, respectively. The government recommended that individuals other than the defendant claim their interest in the confiscated property within 60 days.

silk road connection

Ryan Farace, who was accused of illegally selling Xanax on the dark web in 2018, utilized Bitcoin in his transactions. The latest filing outlines the government’s plan to sell cryptocurrency seized after Farace and his father, Joseph Farace, were convicted of money laundering conspiracy.

The plea deal revealed that Ryan Farace, known as “Xanaxman,” operated on the infamous Silk Road dark web marketplace. The U.S. government’s decision to sell bitcoin is similar to a recent appeals court order that upheld the confiscation of 69,370 bitcoins related to Silk Road.

Also Read: OneCoin Fraudster Mark Scott Sentenced to 10 Years in Prison for Laundering $400 Million

as a result

As the U.S. government plans to liquidate confiscated Bitcoin, market observers are closely watching the potential impact of the U.S. government’s large-scale Bitcoin sale on the cryptocurrency market. The previous case led to speculation about price movements and highlighted the importance of government-held cryptocurrencies to broader market dynamics.