Silk Road Founder May Fight for Seized $6.5 Billion Bitcoin After Trump Pardon

, the founder of Silk Road, could attempt to reclaim $6.5 billion in Bitcoin seized from the platform. Ulbricht, 40, was serving a life sentence for operating the darknet drug marketplace but walked free on January 22 after a pardon from Donald Trump. Legal experts say his bid to recover the funds could trigger a lengthy court battle.

The key question is whether the Bitcoin is still under court jurisdiction or if it has been transferred to the U.S. Treasury. If the money remains in the court system, Ulbricht’s legal team could argue for its return. However, if it has already been absorbed by the Treasury, recovering the funds would be nearly impossible, as only Congress can authorize such payments.

Ulbricht was convicted in 2015 for creating Silk Road, a site often compared to Amazon but for illegal drugs. The platform facilitated transactions using Bitcoin, earning him approximately $200 million before authorities shut it down in 2013. Prosecutors claimed at least six people died after using drugs bought on the site.

Trump, who granted Ulbricht a full and unconditional pardon, praised him as a hero of the Libertarian movement. In his announcement, Trump accused the prosecutors of being part of a politically motivated attack and labeled them as “scum.” His decision sparked widespread debate, with critics arguing that Ulbricht’s crimes warranted severe punishment.

Ulbricht’s potential legal battle stems from a 2020 case involving an anonymous hacker, referred to as “Individual X,” who stole Bitcoin from Silk Road. The hacker later agreed to surrender the funds to federal authorities. In December, a judge approved the sale of the seized cryptocurrency, which was valued at $6.5 billion at the time.

Attorney Samuel Morrison, a clemency expert, explained that Ulbricht’s ability to reclaim the Bitcoin depends on its legal status. If the funds are still in court custody, his lawyers may have an argument. However, if the Treasury has taken control, the chances of recovery are slim. Morrison compared the situation to post-Civil War pardons that prevented the confiscation of property, but he noted that this case involves billions of dollars, making it unprecedented.

Margaret Love, a former U.S. Pardon Attorney, echoed Morrison’s concerns. She emphasized that once funds are officially deposited into the Treasury, they can only be returned through congressional approval. This legal roadblock could complicate any efforts by Ulbricht to regain control of the assets.

The U.S. government has been selling off confiscated Bitcoin over the years. Had the Treasury held onto all 173,991 Bitcoins seized from Ulbricht, they would now be worth over $18 billion. However, concerns about market stability have led officials to sell the assets gradually.

Trump has signaled a more favorable stance on cryptocurrency, even launching his own digital token. His administration’s approach to crypto regulation contrasts with previous government policies, which have generally been more restrictive.

Authorities, including the Department of Justice and Treasury, have not yet commented on Ulbricht’s potential legal challenge. His attorneys have also remained silent on whether they plan to pursue the case. If he does fight for the Bitcoin, it could become one of the most high-profile legal battles in crypto history.