Silk Road Kingpin Apparently Hid A Stash Of $US80 Million In Bitcoin

Silk Road Kingpin Apparently Hid a Stash of $US80 Million in Bitcoin

Ross Ulbricht, the recently arrested mastermind behind Silk Road, appeared in court today where his lawyer begged for more time before the detention hearing. The judge said he didn't "know what you're going to accomplish in the next several days." Maybe move some of his massive stash of hidden Bitcoin?

Forbes' Kashmir Hill just published details about the fate of the 26,000 Bitcoin that the FBI seized from Silk Road when they shut it down. At the time of the arrest, that was $US3.6 million worth of the crypto currency, but it's pennies compared to what Ulbricht apparently stashed away as commission. Hill reports:

The spokesperson says the approximately 26,000 Bitcoins seized are just the ones that were held in Silk Road accounts. In other words, it's Silk Road users' Bitcoin. The FBI has not been able to get to Ulbricht's personal Bitcoin yet. "That's like another $US80 million worth," she said, explaining that it was held separately and is encrypted. If that is indeed what he's holding, that's close to 600,000 Bitcoin all together or about 5% of all Bitcoin currently in existence.

That's insane. It's, like, insanity of the batshit variety. Nuts! If true — and assuming Bitcoin doesn't totally crash — this 29-year-old hipster managed to hoard five per cent of all Bitcoin in existence, and it might never be found. So he could just do a few years in the slammer, come out and dig up a virtual fortune then go chill on a boat in Mexico for the rest of his life. It'll be like The Shawshank Redemption except with fewer redemptive qualities.

About the measly $US3.6 million in Bitcoin the FBI is holding, they're going to keep holding it until the trial is over. They've got a wallet set up and everything. So who says the government's no good at cybersecurity? Oh yah, the president. [Ars, Forbes]


Comments

    I think you'll find that if found guilty of being behind a major drug trafficking network and of money laundering on a large scale, not to mention the reports of him alledgedly trying to order hits on people, then he'll do more than "a few years in the slammer". He won't be seeing daylight again until the sun shines on his tombstone after 75 years in the slammer is more like it. Oh, BTW, 'mastermind' - misnomer me thinks.

    Its hard to legitimize shutting this guy down. So he provided a Market Place unregulated by Government. The Governing of others against their will is a seditious act causing government to he held in hatred and contempt. The only legitimacy it has is from the barrel of a gun and the capacity to use it. The market place wasn't just a market - by this description it was also a bank - where users stored funds. By taking the market place down they effectively attacked an unregulated bank. This does not bode well for offshore banks looking to tell the USA where to go.
    While the market place is a failure the Idea of a Bitcoin Bank should be something that has a future on the TOR network.

    Good on him

      Exactly! Who wouldn't do this? He's protecting himself and his interests, The people that are pissed, are the people that did it with the old economic system and have failed to keep up to date with today's technologies. Systematic collapse is fast approaching.

    light him up, as a warning that crooks don't always get away with this shit.

    good for him, criminality of drugs is retarded, also i need a new weed hook up now.

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