Home News Silk Road 2 admin forfeits £493,550 in Bitcoin

Silk Road 2 admin forfeits £493,550 in Bitcoin

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A court in the United Kingdom will confiscate from the former administrator of the Silk Road darknet marketplace £493,550 (about $672,000 at the time of writing) in Bitcoin (BTC). Computer Weekly reported this.

Thomas White, also known as “Cthulhu”, led Silk Road after the arrest of the creator of the marketplace Ross Ulbricht, and then Silk Road 2.0.

Ross William Ulbricht, known as “Dread Pirate Roberts,” established and ran the darknet marketplace Silk Road from 2011 until the US government shut it down in 2013. He sought to free people from prohibitions and total control by states. U.S. District Judge Katherine Forrest sentenced him to double life imprisonment. Plus forty years in prison without the right to parole in May 2015.

The National Crime Agency

In 2019, White pleaded guilty to drug trafficking, money laundering and creating images of child abuse. He was sentenced to five years and four months in prison.

The UK’s National Crime Agency (NCA) has not been able to establish the exact amount that White received from his illegal activities. However, it is known that about $96 million (~£73 million) worth of goods was sold through SR2. Moreover, according to law enforcement, White took a commission of 1% to 5% from each sale.

White has already served two years of his five years and four months prison sentence.

BTC related to Silk Road

Earlier in 2020, the US Department of Justice confiscated 69,370 BTC related to Silk Road. Also, law enforcement officers confiscated an equivalent number in Bitcoin Cash, Bitcoin SV and Bitcoin Gold. The agency stressed that this is the largest amount in cryptocurrency ever confiscated by the US authorities.

According to the court document, the owner of the address, who goes by the pseudonym Individual X, hacked Silk Road and stole these coins. They were withdrawn from the darknet market on May 6, 2012. A year after the withdrawal, they were moved to the address where they lay until the moment of confiscation.

The document says that Silk Road founder Ross Ulbricht; who is serving a life sentence, threatened Individual X in an attempt to return the funds, but did not succeed.

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