US authorities have shut down the Silk Road website and seized $28m worth of bitcoins, a digital currency. Photograph: Ted Soqui/Corbis
Authorities in the US have seized an estimated $28m in bitcoins, a digital currency, from the alleged owner of Silk Road, the online marketplace for drugs and criminal activity that law enforcement shut down three weeks ago.
Federal prosecutors in New York said Friday that the 144,336 bitcoins, which were widely used on the defunct site, were discovered on computer hardware belonging to Ross William Ulbricht, known online as Dread Pirate Roberts, who was arrested 1 October in San Francisco and charged with various conspiracy counts. They said it represented the largest ever bitcoin seizure.
Ulbricht's lawyer could not immediately be reached on Friday evening, though he had previously told reporters that Ulbricht denied the charges.
Since it began operations in 2011 Silk Road had provided an anonymous site where drug dealers, counterfeiters and other criminals could shop for everything from heroin to hitmen, according to the justice department.
More than 900,000 registered users of the site bought and sold drugs using bitcoins, according to authorities. The currency, which has been around since 2008, first came under scrutiny by law enforcement officials in mid-2011 after media reports surfaced linking bitcoins to Silk Road.
With nearly 30,000 bitcoins previously seized, federal agents had so far collected more than $33m worth based on current value, the US attorney's office in Manhattan said.
The seizures were carried out as part of a corresponding civil action against Silk Road and Ulbricht. Ulbricht, who is detained in California, is expected to appear within weeks in Manhattan federal court to face criminal charges of narcotics trafficking conspiracy, computer hacking conspiracy and money laundering conspiracy.
Court documents allege that $1.2bn in bitcoins changed hands through Silk Road during more than two years of operation, with the site charging 8-15% in commissions
Federal prosecutors in New York said Friday that the 144,336 bitcoins, which were widely used on the defunct site, were discovered on computer hardware belonging to Ross William Ulbricht, known online as Dread Pirate Roberts, who was arrested 1 October in San Francisco and charged with various conspiracy counts. They said it represented the largest ever bitcoin seizure.
Ulbricht's lawyer could not immediately be reached on Friday evening, though he had previously told reporters that Ulbricht denied the charges.
Since it began operations in 2011 Silk Road had provided an anonymous site where drug dealers, counterfeiters and other criminals could shop for everything from heroin to hitmen, according to the justice department.
More than 900,000 registered users of the site bought and sold drugs using bitcoins, according to authorities. The currency, which has been around since 2008, first came under scrutiny by law enforcement officials in mid-2011 after media reports surfaced linking bitcoins to Silk Road.
With nearly 30,000 bitcoins previously seized, federal agents had so far collected more than $33m worth based on current value, the US attorney's office in Manhattan said.
The seizures were carried out as part of a corresponding civil action against Silk Road and Ulbricht. Ulbricht, who is detained in California, is expected to appear within weeks in Manhattan federal court to face criminal charges of narcotics trafficking conspiracy, computer hacking conspiracy and money laundering conspiracy.
Court documents allege that $1.2bn in bitcoins changed hands through Silk Road during more than two years of operation, with the site charging 8-15% in commissions
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