Feds in NY: $28M bitcoins forfeiture a record - MyFoxAustin.com | KTBC Fox 7 | News, Weather, Sports

Feds in NY: $28M bitcoins forfeiture a record

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NEW YORK (AP) - Federal prosecutors in New York say $28 million in bitcoins was seized in a record forfeiture from the server of the black market website Silk Road.

They announced the forfeiture Thursday, a day after a Manhattan judge said the government could keep the digital currency and the website.

The forfeiture comes three months after San Francisco entrepreneur Ross Ulbricht was arrested on charges he operated an online marketplace for illegal drugs following a crackdown on the website.

U.S. Attorney Preet Bharara says the bitcoins were seized because they were the proceeds of crimes. The prosecutor says investigators also seized more than $130 million worth of bitcoins from computer hardware belonging to Ulbricht but he's challenging those government forfeiture claims.

A lawyer for Ulbricht hasn't responded to a message seeking comment.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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