The case of the 69,000 Bitcoins seized by the US government has taken a new twist, with the announcement that these funds are destined for the US Treasury. This sum, currently worth around $4.4 billion, represents one of the largest confiscations of criminal proceeds in US history. However, while the enormous amount is about to be sold by the US authorities, a key protagonist in this case, Tigran Gambaryan, the IRS agent who seized these bitcoins, is himself imprisoned.

In November 2020, an individual referred to by the U.S. Department of Justice as “Individual X” cooperated with Tigran Gambaryan and federal prosecutors in San Francisco. By providing a Bitcoin private key, this individual allowed the IRS to transfer 69,370 bitcoins from a wallet controlled by “Individual X” to an account held by the U.S. government. These bitcoins came from funds stolen from the online drug marketplace Silk Road, which was shut down in 2013. Since then, their value has continued to grow, reaching $4.4 billion today.

While the US government recently obtained legal confirmation of the ownership of these bitcoins after several years of legal battles, Tigran Gambaryan, who had led the investigation, now finds himself in a more than surprising situation. After leaving the IRS to join Binance as head of investigations, he was arrested in Nigeria, where he has been detained for several months.

An imminent sale for a record amount

The US Supreme Court’s decision not to hear an appeal of the forfeiture has paved the way for US authorities to put these bitcoins up for sale. The US Treasury is thus preparing to make the largest sale of criminal proceeds ever recorded, thanks to the enormous valuation of these crypto assets.

The story surrounding the identity of “Individual X” remains shrouded in mystery, but his cooperation with authorities appears to have allowed him to avoid criminal prosecution in exchange for the return of the funds. The sum will likely be auctioned off by the US Marshals Service, which has handled several sales of seized cryptocurrencies in the past.