KeyTakeaways:
- Bitcoin wallets linked to Ross Ulbricht hold $47M but are inaccessible.
- DOJ has seized 174,000 BTC from Ulbricht, worth $18.4B today.
- Ulbricht was recently pardoned after double life imprisonment.
Bitcoin wallets linked to Ross Ulbricht, the founder of the Silk Road marketplace, are reportedly still worth $47 million. Analyst Conor Grogan disclosed that these wallets remain untouched, even after Ulbricht’s recent release from incarceration.
Despite the U.S. Department of Justice (DOJ) confiscating 174,000 Bitcoin directly and indirectly from Ulbricht, dozens of wallets tied to him continue to exist with significant holdings.
The Bitcoin in these wallets mainly consists of dust, tiny, unspendable amounts that have appreciated significantly over the years. These amounts have grown exponentially in value due to Bitcoin’s meteoric rise since Ulbricht’s arrest in October 2013. At the time of his arrest, Bitcoin was trading at approximately $130.
Despite their value, Grogan believes it is unlikely that Ulbricht can access the private keys needed to unlock these wallets. The wallets’ continued inaccessibility leaves the Bitcoin effectively dormant.
DOJ Seizures and Marketplace Revenue
The DOJ has confiscated a substantial portion of Ulbricht’s Bitcoin, seizing roughly 174,000 BTC over the years. At today’s prices, this amount would be worth approximately $18.4 billion. These seizures were part of the government’s efforts to dismantle the Silk Road, a dark web marketplace facilitating illicit transactions.
Silk Road generated hundreds of millions of dollars in sales during its operation, earning about $13 million in Bitcoin commissions. The platform’s closure marked a significant event in the history of cryptocurrency and online criminal activity.
Public Reaction to Ulbricht’s Release
Ulbricht, who was sentenced to double life imprisonment plus 40 years in 2014, was recently pardoned. His release has sparked mixed reactions. While some libertarian segments of the Bitcoin community welcomed the decision, others criticized it due to his role in enabling criminal activities through the Silk Road.
Earlier today, a supporter donated one Bitcoin to a fund established to assist Ulbricht following his release. The fund aims to provide financial support as he transitions to life outside of incarceration.
