Australian Government May Soon Auction $9 Million in Silk Road Bitcoins

About $9m in bitcoin may be sold by the Australian government following the sentencing of a Silk Road user.

AccessTimeIconOct 31, 2014 at 7:15 p.m. UTC
Updated Aug 18, 2021 at 3:27 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The bitcoin community could soon see another high-profile auction of bitcoins confiscated from users of the now-defunct online black market Silk Road.

Australian law enforcement officials are now in possession of 24,500 bitcoins (worth $9.4m at press time) following the conviction of their original owner, 32-year-old Warrandyte native Richard Pollard. Pollard was given an 11-year prison sentence today after pleading guilty to commercial drug trafficking, according to The Sydney Morning Herald.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • Judge Paul Lacava told Pollard at the sentencing:

    "The system of drug trafficking you engaged in meant you operated an effective one-stop shop where a variety of drugs could be purchased online."

    Following the decision, Pollard’s bitcoins are subject to a restraining order and a 28-day appeal period. Should the funds be forfeited to law enforcement officials as expected, the bitcoins will then be sold at auction by the Victoria Department of Justice.

    The potential sale is notable given that the size of the bitcoin stash seized is comparable to the one seized by the US government in its shut down of Silk Road.

    The nearly 30,000 BTC remaining in accounts on the site were ultimately sold in an auction held by the US Marshals Service this summer, though it did not include the 144,000 BTC confiscated from its alleged operator, Ross Ulbricht.

    Silk Road connection

    Authorities originally began monitoring Pollard in 2012, eventually obtaining a search warrant for two of his properties. There, police found mailing materials that were being used to transport drugs to Pollard's customers on Silk Road.

    Police estimate that Pollard trafficked 2.8 kilograms of MDMA, 44 grams of cocaine and 30 grams of ketamine as well as a host of other illegal substances from August to December 2012, using multiple post office boxes to conceal the volume of his illicit activities.

    The search of Pollard’s properties revealed $58,000 in cash as well as three electronic wallets containing the 24,518 BTC. The funds were later formally confiscated in 2013.

    Media event likely

    Should the latest Silk Road auction garner similar attention in Australia, the local bitcoin community may be able to expect the technology to obtain more visibility as a result of the sale process.

    The US Marshals auction saw venture capitalist Tim Draper purchase the entirety of the holdings, but was still widely considered a boon for bitcoin’s publicity in the US market and coincided with a surge in the price of bitcoin.

    The auction was also cited as a boost to bitcoin's credibility, helping dispel rumors that the use of the technology was illegal.

    Australian money image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.