Silk Road Bitcoin Update (2025)
If you are new to the cryptocurrency world, you may not be aware of the Silk Road and the long-lasting effects it has had on the cryptocurrency market. Don’t worry; we have written this article to bring you up to date.
So, if you're curious about how the old dark web drug website is currently affecting cryptocurrency prices, keep reading, as the DOJ had some important news last week.
What is the Silk Road?
First and foremost, the Silk Road was an old trade route that crossed Europe and Asia from the 2nd to the 15th century. It is one of the longest and oldest trade routes ever.
That isn’t why we are discussing it, however. The Silk Road, in terms of modern-day reference, refers to an old dark web website where individuals around the world could pay in crypto for things like stolen personal information, drugs, and new identities.
The Silk Road website was launched in 2011 by a man named Ross Ulbricht under the pseudonym “Dread Pirate Roberts,” and before it was shut down in 2013, it allowed for the facilitation of over 9,519,664 BTC in sales. Upon the arrest of Ulbricht and the subsequent investigation, the FBI seized a massive 144,000 BTC. Some of these belonged to Ulbricht personally, while others were coins currently held in transactions on the website.
The Selling of the Silk Road BTC
The United States government, when seizing the 144,000 BTC involved in the Silk Road, estimated the value of the coins to be an impressive $28.5 million USD—however, the FBI couldn’t sell off the coins immediately. Rather, their holdings would be reduced via subsequent series of sales, which we will list below.
1. June 27th, 2014: 29,657 BTC sold for $18 million USD
2. March 2023: 9,861 BTC sold for $216 million USD
3. April 3rd, 2024: 30,175 BTC sold for $2 billion USD (may not be a full sale, only 2,000 BTC confirmed as sold)
4. December 2nd, 2024: 19,800 BTC transferred to a new address, if sold, value approx. $2 billion USD. The sale is unconfirmed but suspected.
The tracking of the BTC seized from the former Silk Road has become a passion for several groups as they wait for the final sale to come and for the government to officially close the Silk Road chapter of American history.
If you did your math above, you will note that even if all of these were confirmed sales (and they are not), the government would still hold an impressive 54,507 in BTC. To add to that, there was a further seizure of BTC connected to the Silk Road in 2021, when it was discovered that James Zhong had hacked the site during its heyday in 2011 and stolen an impressive 50,676 BTC. This was seized by the US Government in 2021.
Now, we will state right now that the math doesn’t add up because, on January 9th, 2025, it was stated that the US government was officially cleared to sell 69,370 BTC connected with another individual connected to the Silk Road. This BTC is currently valued at an impressive $6.5 billion USD and is sure to tank the current value of Bitcoin when it becomes available—possibly scaring off many investors.
Now, we aren’t sure if there is a mistake in several news articles (as has become the case with AI use—misinformation spreads like wildfire), but something here isn’t adding up.
The amount of money seized from James Zhong for his hack in 2011 is a confirmed 50,676 BTC—Indicating he is not the “Individual X” the government seized 69,370 BTC from. We suspect that the 69,370 the US government currently plans to sell is only a fraction of what they still own based on our records. Of course, it is possible that not all government sales were discovered by on-chain sleuths, but we find them to be a pretty reliable source of information as a large portion of government-associated wallets are well-known in the cryptocurrency community.
Thus, here is our calculation of the current US government holdings.
54,507 Left over from the initial seizure in 2013. Unsure of location.
+
50, 676 From James Zhong, seized in 2021—likely still tied up in legal issues.
+
69, 370 From individual X, approved for sale in December 2024.
=
174, 553 BTC still currently held by the US Government. If the 69,370 are sold in 2025, 105,183 will still remain in government possession based on our calculations.
What Happens When the Silk Road BTC is Sold?
As we mentioned above, we expect the price of BTC to drop sharply when the Silk Road BTC is sold. This is because Bitcoin price is based on supply and demand. Since these sales would be a massive increase in supply, we expect to see a massive drop in BTC price—though we do expect it to eventually recover.
So, if you are an investor—be prepared, don’t panic, and keep hodling.
What Will Happen to the Rest of the BTC?
Eventually, we expect that all BTC from the Silk Road seizure will be sold by the US government. Although there are currently legal holdups on many of the seized amounts—the US government will likely need the money too badly to continue to hold onto it, especially if the price continues to rise.
There is some speculation (and confirmation) of various states and the US government adding BTC to their treasury. While this may continue to happen, based on regulations and laws surrounding seized property, it will be difficult for the US government to keep these seized BTC. Rather, they will have to sell them legally to the states or the federal government in order to keep things legal. But of course, it’s the US government, so they might do something shady as well.
Overall, we find it fascinating to see what has become of the Silk Road funds so many years later, and we hope you have enjoyed learning this information as well.
