US Government to Sell $116 Million in Bitcoin Seized From Darknet Dealer ‘Xanaxman’

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The forfeiture division of the U.S. government has announced its plan to sell 2,933.64 bitcoin. These were confiscated from Ryan Farace, who faced charges in 2021 for laundering proceeds from drug trafficking. Farace, also known by his alias Xanaxman, disclosed in his plea agreement that he utilized the infamous Silk Road marketplace.

U.S. Forfeiture Division Aims to Sell 2,933.64 Bitcoins

In a recent public announcement, the U.S. government’s forfeiture division declared its intention to “dispose” of bitcoins confiscated from Ryan Farace and Sean Bridges. The federal agents secured a total of 2,874.90 BTC from both individuals and an additional 58.74 BTC exclusively from Farace. In 2018, the Department of Justice indicted Farace for laundering proceeds from drug sales. The crypto assets were formally seized in 2021 because Farace alleged he was unable to locate the funds.

Subsequently, he was apprehended attempting to transfer the funds, leading to the confiscation of the entire batch of 2,933.64 bitcoins. On Jan. 8, 2024, Farace received his sentence in the District of Maryland, where it was noted that he collaborated with law enforcement. His father, Joseph Farace, was sentenced to 19 months, while Farace himself was given a 54-month prison term. Regarding the 2,933.64 bitcoins, valued at approximately $116 million, the U.S. forfeiture division announced they are available for acquisition by any interested parties.

“Any person, other than the defendant(s) in this case, claiming interest in the forfeited property must file an ancillary petition within 60 days of the first date of publication (January 10, 2024) of this Notice on this official government internet web site, pursuant to Rule 32.2 of the Federal Rules of Criminal Procedure and 21 U.S.C. § 853(n)(1),” the U.S. government’s notice details.

Farace was involved in producing and distributing alprazolam tablets (Xanax) in return for BTC, through transactions on darknet marketplaces (DNMs). Crypto tracking methods revealed that all of the bitcoin wallets linked to Farace, or his alias Xanaxman, amassed over 9,138 bitcoins from sources tied to DNMs. “Ryan is an intelligent and thoughtful person who is extremely remorseful for his conduct in this case, particularly for the harm and pain that he has brought to his family,” David Walsh-Little, Farace’s attorney told the Baltimore Sun.

What do you think about the U.S government selling 2,933.64 bitcoins to any interested buyer? Share your thoughts and opinions about this subject in the comments section below.

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