Australian Law Agency Planning to Auction Seized Silk Road Bitcoin

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Australian Law Agency Planning to Auction Seized Silk Road Bitcoin

ForexMinute.com – Australian law enforcement agency Victoria Department of Justice is planning to auction Bitcoins worth around $9.6 million. The would-be-auctioned digital currency units was seized from a Silk Road drug dealer.

The arrested individual, named Richard Pollard, was recently sentenced to 11 years jail time by a local court, which subsequently transformed his illegal assets to the property of the government. The seized assets included $58,000 in cash, along with three bitcoin wallets carrying a total sum of 24,518 BTC – all earned apparently from “a relatively large and sophisticated drug-trafficking business”, as per told by Judge Paul Lacava.

This might be the third-time in year when Bitcoin has proved itself to be a great drug-trafficking tool. At first, Feds arrested Silk Road alleged founder Ross Ulbricht and later sold over $19-million worth Bitcoin seized from his multiple wallets. Then once again in Australia, a Bitcoin ATM operator was arrested on the charges of promoting drug businesses within the nation. Though, no Bitcoin seizure was reported in this case, at least officially.

A broader view displays that the involvement in drug-trafficking or money laundering might not be the only cases where Bitcoin gets seized. A France-based Bitcoin exchange recently was busted over the cryptocurrency regulatory issues in the country. There almost 388 BTC, and other valued assets were busted as well. Money laundering, in this case, was one of the charges made against the owner.

The only cryptocurrency that can get some benefits from such regular busts is Darkcoin, which has launched itself as an anonymity-offering alternative to the Bitcoin. The coin’s pet platform Darksend include some tried-and-tested methods to obfuscate transactions, such that they could never be traced back to the persons who sent or received them in the first place.

In the meantime, let us wait for the government to add 24,518 BTC back to the market. It might affect the price in the future, same as what happened during the Fed’s auction.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com