June 13, 2024

U.S. Plans to Dispose $117 Million 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. The cryptocurrency, valued at about $133 million at the time of filing, will be handled as directed by the United States Attorney General.

The forfeiture notice, dated January 8, 2024, pertains to the case of U.S. v. Joseph Farace (Court Case Number: 21-CR-00294). The forfeited Bitcoins, totalling over $133 million, were seized from Ryan Farace and Sean Bridges in Memphis, TN, and Arlington, VA, respectively. The government has invited individuals, excluding the defendants, to claim an interest in the forfeited property within 60 days.

Silk Road Connection

Ryan Farace, charged in 2018 for illicitly selling Xanax on the dark web, utilized Bitcoin for transactions. The recent filing outlines the government’s plan to sell the seized cryptocurrency following the convictions of Farace and his father Joseph Farace for 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 the bitcoins draws parallels with a recent appeals court mandate finalizing the forfeiture of 69,370 bitcoins linked to the Silk Road.

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

In Conclusion

As the U.S. government plans to liquidate seized Bitcoins, market observers are closely monitoring the potential impact of a large-scale Bitcoin sale by the U.S. government in the cryptocurrency market. Previous instances have led to speculation about price fluctuations, emphasizing the significance of government-held cryptocurrency in the broader market dynamics.

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