US District Judge Robert Scola has levied a 20-year prison sentence on 36-year Gal Vallerius otherwise called “OxyMonster” on the dark web drug hub Dream Market.
During his plea agreement, Vallerius confirmed to selling drugs such as oxycodone, heroin, cocaine, fentanyl, and Ritalin in exchange for cryptocurrencies such as bitcoin and bitcoin cash on the dark web. Over 100 BTC and 121.95 BCH held from his as profits of illegal activity will presently be lost to the government.
The big question for many after the huge loss is: “What becomes of this huge amount of crypto in the hands of the U.S. government?”
A development of this sort is not surprising. In 2015, following Silk Road developer Ross Ulbricht was given a life sentence, the government seized 144,336 BTC discovered on his laptop. At a time when the price of one bitcoin was only more than $300, the government gathered a total of $48 million selling to multiple auctions. Some later disapproved the government’s fast sale which stopped it from earning even more.
With his plea agreement, it is claimed that Vallerius would have to “provide all necessary passwords” to make it available to the government. It is still not known if the government will take the same move to that taken by Silk Road or slow sown auctions till prices show an increase. The infrequency of this situation makes it hard for analysts to predict what decision the government will make.