United States of America v. Ulbricht et al

Filing 21

ORDER TO STAY CIVIL FORFEITURE PROCEEDINGS PURSUANT TO 18 U.S.C. § 981(g): NOW, THEREFORE, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED, PURSUANT TO 18 U.S.C. § 981(g), THAT: The civil forfeiture proceedings in case number 13 Civ. 6919 (JPO) with respect to defendant / claimant Ulbricht are stayed until the related criminal case 13 Mag. 2328 (FM) has been disposed of at the trial court level. IT IS FURTHER ORDERED that this order shall have no effect on the rights of other potential claimants; and IT IS FURTHER ORDERED that the Government shall notify the court of the disposition of criminal case number 13 Mag. 2328 (FM) no later than thirty (30) days following said disposition. SO ORDERED. (Signed by Judge J. Paul Oetken on 1/27/2014) (ama)

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK 1 ; "'''',' ....". ",,~S,:-_~ UNITED STATES OF AMERICA, Plaintiff, - v. ­ ORDER TO STAY CIVIL FORFEITURE PROCEEDINGS PURSUANT TO 18 U.S.C. § 981(g) ROSS WILLIAM ULBRICHT, a/k/a \\Dread Pirate Roberts," a/k/a \\DPR," a/k/a \\Silk Road," No. 13 Civ. 6919 (JPO) Defendant, ECF Case ANY AND ALL ASSETS OF SILK ROAD; And All Property Traceable Thereto, Including but not limited to the BITCOINS LOCATED ON ULBRICHT'S COMPUTER HARDWARE, DOC #: il'DX:'-HIr-tlN--=+-+-..Lff........II D/.TE F~LED~!\ _ _-=,;;;...;;.. _ Defendants-in-rem. WHEREAS, America upon on September (\\Government"), the forfeiture filing of of the 30, 2013, the United States of commenced this civil forfeiture action a verified complaint, above-captioned Defendants seeking in Rem the (the \\Defendants in Rem") pursuant to Title 18, united States Code, Section 981(a) (1) (A), as property involved in money laundering and attempted money laundering transactions, in violation of Title 18, United States Code, section 1956, and seeking civil money laundering penalties against Defendant in Personam Ross William Ulbricht, a/k/a "Dread Pirate Roberts," a/k/a "Silk Road," WHEREAS, ulbricht William united criminal 13 Ulbricht, narcotics ("Ulbricht"); on September 27, by 2013, complaint Mag. in 2328 trafficking conspiracy, Code, States conspiracy, in a/k/a "DPR," Section violation of the Government charged united (FM) , States with engaging Title 18, united computer a 846i Title States Ross in a in violation of Title 21, 18, united Code, Section hacking States Section 1030; and a money laundering conspiracy, of v. Code, in violation 1956, all in connection with his operation of the Silk Road Hidden Website; WHEREAS, protective on order October which, 1, 2013, this other things, among Court entered authorized a the United States to seize the Silk Road Hidden Website and any and all bitcoins contained in wallet files Road servers, including caption of the Complaint, proceeding, those servers residing on Silk enumerated in the pending the outcome of this civil by transferring the full account balance in each wallet to a Bi tcoin address controlled by the United States (the "Silk Road Server Bitcoins"); WHEREAS, on October 24, 2013, this Court entered a second protective united order States to which, seize among any other and all things, authorized bitcoins contained the in wallet files residing on certain computer hardware belonging 2 to Ulbricht, pending the outcome of this civil proceeding, by transferring the full account balance in each Bitcoin address controlled by the United states Hardware Bitcoins" together i with the wallet to a (the "Computer silk Road Server Bitcoins, the "Defendant Bitcoins"); WHEREAS, Ulbricht filed a timely Verified Claim to the Computer Hardware Bitcoinsi WHEREAS, on January 15, 2014, this Court entered a Partial Default Judgment and Order of Forfeiture with respect to the Silk Bitcoins, Road Hidden Website and the silk Road Server on the basis that no party or entity had filed a timely Verified Claim; WHEREAS, the Government and Ulbricht jointly bring this motion to stay the civil forfeiture proceedings wi th respect to defendant / claimant Ulbricht on the following grounds: that to would allow Ulbricht adversely conduct affect to the the prosecution of a the prosecution of 13 Mag. of the go forfeiture forward ability of civil the related criminal 2328 proceeding wi th (PM), will (ii) burden discovery Government case, to namely, that continuation Ulbricht's right against self-incrimination in the related criminal case, (iii) (i) and that a protective order limiting discovery would not be an appropriate substitute for a stay; 3 NOW, THEREFORE, IT IS DECREED, PURSUANT TO 18 U.S.C. 1. Civ. 6919 The civil (JPO) HEREBY § ORDERED, ADJUDGED, AND 981(g), THAT: forfeiture proceedings in case number 13 with respect to defendant / claimant Ulbricht are stayed until the related criminal case 13 Mag. 2328 (FM) has been disposed of at the trial court level. 2. IT IS FURTHER ORDERED that this order shall have no effect on the rights of other potential claimants; and 3. IT IS FURTHER ORDERED that the Government shall notify the court of the disposition of criminal case number 13 Mag. 2328 (FM) no later than thirty disposition. AGREED AND CONSENTED TO: PREET BHARARA United States Attorney for the Southern District of New York Attorney for Plaintiff BY'~~ CHRISTINEI: MAGDa Assistant United States Attorney One st. Andrew's Plaza New York, NY 10007 4 (30) days following said ROSS WILLIAM ULBRICHT Claimant DATE ROSS WILLIAM ULBRICHT By: /:to PI ()t / !J'1 By: ,_)7. L. DRATEL, L. Dratel, Street, 3rd Floor New York, NY 10005 SO ~'~7 DATE HO UN SOUTHERN DISTRICT OF NEW YORK 5 J 26/ ,/