Silk Road

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US selling 69K seized bitcoins could mess with Trump plans for crypto reserve

At the end of 2024, a US court authorized the Department of Justice to sell 69,370 bitcoins from “the largest cryptocurrency seizure in history.”

At bitcoin’s current price, just under $92,000, these bitcoins are worth nearly $6.4 billion, and crypto outlets are reporting that DOJ officials have said they’re planning to proceed with selling off the assets consistent with the court’s order. The DOJ had reportedly argued that bitcoin’s price volatility was a pressing reason to push for permission for the sale.

Ars has reached out to the DOJ for comment and will update the story with any new information regarding next steps.

A hacker initially stole these bitcoins from Silk Road—an illegal online marketplace where goods could only be bought and sold with bitcoins—in 2012, shortly before the US government shut down the marketplace. The US later discovered the stolen bitcoins in 2020 while conducting further investigations of Silk Road, eventually securing a consent agreement that year from the hacker, who signed the bitcoins over to the government.

Whether the government’s seizure of those bitcoins was proper has been disputed by Battle Born Investments, a company that purchased the assets of bankruptcy estate from an individual who they believed to be either the hacker whose bitcoins were seized or someone “associated with him.”

After a court battle failed to return the bitcoins, Battle Born attempted to unmask the hacker through a Freedom of Information Act (FOIA) request, which sparked a new court fight. But ultimately, in late December, the court agreed with the US government that the hacker had a right to privacy as someone who was the subject of a criminal investigation and shouldn’t be unmasked. That ended Battle Born’s claim to the bitcoins and cleared the way for the government’s sale.

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Lidar mapping reveals mountainous medieval cities along the Silk Road

The city of Tugunbulak, which stretched beyond the forest inspector’s house, had powerful walls enclosing the area of 120 hectares, nearly five times larger than the Tashbulak site. With those walls, there was a dense architecture with hundreds of buildings, streets, palaces, plazas—even industrial facilities the Frachetti’s team suspects were used to produce iron or steel.

To put that in perspective, the medieval walls of Siena, one of the foremost cities in Italy during that time, surrounded an area of 105 hectares at the peak of its power. Genoa, another crown jewel among Italian medieval cities, between the 6th and 11th centuries, had walls protecting just 20 hectares, an area bumped up to around 50 hectares by the time of Frederic Barbarossa’s invasion between 1155 and 1158 CE.

Tugunbulak was a monster of a city. But what did it look like?

A city of iron?

“If you looked at Tugunbulak from the outside you would have seen these kind of rocky walls. They appear to have been made in a technology called rammed earth. The builders would take mud and press it into something almost like cement—a very high labor, very dense, very defensive and fortified material,” Frachetti says. Rammed earth was a dominant building technique used in the early stages of Tugunbulak’s development. “The later phase in the site, we see some stone architecture foundations with mud brick on the top. They used local resources and building techniques that were popular in the region,” Frachetti explains.

According to the team, the main contribution of the city to the Silk Road trade was iron, as the surrounding mountains are particularly rich in iron ore. One of the still unanswered questions was about the way Tugunbulak’s people lived and worked. Were they skillful blacksmiths forging iron and perhaps even steel in their mountainous city? Did at least some of its inhabitants live the lives of nomads, visiting the city only periodically to trade on market days or did they live there permanently?  “We’d like to know how extensive was the industry there—what level of production were they actually doing?” Franchetti says. He suggested that a shifting, seasonal population that most likely lived in yurts spread outside of the walls was more likely in the smaller Tashbulak, considering it lacked residential suburbs. “Tugunbulak must have been a far more organized political entity. Their power and their influence must have been significant in the broader economy of the Silk Road,” Frachetti claims.

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