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Penalty documents filed in U.S. in 2013 bitcoin theft

Forfeiture documents of two Florida men, who were involved in the theft of 5,400 bitcoins from illegal online drug sales site Sheep Marketplace in late 2013, were filed last week in Jacksonville, Florida.

According to Forbes, the U.S. government has seized $4.5 million from these men and the money was forfeited back in the spring of 2014. The two accused Nathan Gibson and Sean Mackert who are now 24, allegedly stole $6.6 million worth bitcoin from Sheep Marketplace in 2013. Along with money, a 2012 Toyota Camry and a 2008 Honda motorcycle were also forfeited.

The government however said that the amount was equivalent to $6.6 million although it was using an exchange rate about $1,200. During this time, bitcoin’s value doubled and peaked before beginning a downward slide.

The theft in the year 2013 led to the shuttering of Sheep Marketplace. This had sprung up in response to the closing of Silk Road which is the first online drug market to use bitcoins. Criminal defense attorney for the case, Jeffrey Lichtman said in a statement before that, “There was nothing where [Gibson and Mackert] were injecting code. There was no hacking. This was just a poorly created website that was just exploited by very young kids who immediately accepted responsibility for their actions.

After the government seized their funds in 2014, following financial accounts, and cash held in their residence were found:

  • Gibson held $817,426 at Bancorp, $224,705 at Coinbase, $49,841at Bank of America, $78,480 at his residence and $814,267 at Coinbase and converted to USD.
  • Mackert held $872,571 at Bancorp, $354,315 at Coinbase, $891,400 in cash at his residence, $5,420 at his home, $380,042 at Coinbase and converted to USD and $25,760 at VyStar Credit Union.

Jeffrey Lichtman talking about the case said that he and his clients are in discussions with the government regarding this and there are no hearings or other events are scheduled for now in this forfeiture and criminal cases.

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