U.S. reserve could hold bitcoin seized from darknet marketplace founders

A federal judge sentenced Empire Market co-founder Raheim Hamilton to 40 years in prison and a $5 million fine on Oct. 5. As part of his agreement with prosecutors, Hamilton will surrender about 1,230 bitcoin and 24.4 ether. Co-founder Thomas Pavey has agreed to surrender about 1,584 bitcoin and is due to be sentenced later this month.

The 2,814 bitcoin are worth about $234 million at Sunday’s prices. Under a 2025 executive order, bitcoin finally forfeited to the U.S. Treasury goes into a strategic reserve and generally cannot be sold, though authorities have not said when the coins might be forfeited. Pavey has not yet been sentenced.

The article contrasts that policy with Saxony’s 2024 sale of about 49,858 bitcoin seized in a separate case, which raised about 2.64 billion euros. The proceeds remain secured for the criminal proceedings; no final decision on forfeiture has been reported.

Read the full story at cryptoticker.io.