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.
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.
