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
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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/ ,/