United States of America v. Ulbricht et al

Filing 22

STIPULATION AND ORDER FOR INTERLOCUTORY SALE OF BITCOINS: NOW, THEREFORE, IT IS HEREBY STIPULATED, ORDERED, AND AGREED THAT, PURSUANT TO RULE G(7) (b) OF THE SUPPLEMENTAL RULES FOR CERTAIN ADMIRALTY AND MARITIME CLAIMS: The United States and Ulbricht agree that the United States may, in its sole discretion, sell any portion or all of the Computer Hardware Bitcoins, on a date or dates and in a manner to be determined by the Government. This Order does not obligate the Government to offer any of the Computer Hardware Bitcoins for sale. Ulbricht represents that he is the sole owner of the Computer Hardware Bitcoins. And as set forth herein. SO ORDERED. (Signed by Judge J. Paul Oetken on 1/27/2014) (ama)

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA,
Plaintiff,
- v. ­
ROSS WILLIAM ULBRICHT,
a/k/a uDread Pirate Roberts,"
a/k/a "DPR,"
a/k/a "Silk Road,"
Defendant,

STIPULATION AND ORDER
FOR INTERLOCUTORY
SALE OF BITCOINS
No. 13 Civ. 6919 (JPO)
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,
Defendants-in-rem.

WHEREAS, the United States of America ("Plaintiff"),
by and through its counsel, Preet Bharara, United States
Attorney for the Southern District of New York, of counsel
Christine I. Magdo, Assistant United States Attorney,
commenced the above captioned action on or about September 30,
2013, upon the filing of a verified complaint (the
\\Complaint"), seeking the forfeiture of the above-captioned
defendants in rem (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;
WHEREAS, on October 24, 2013, upon the application
of the United States, the Court entered a protective order
which, among other things, authorized the United States to
seize any and all bitcoins contained in wallet files residing
on certain computer hardware belonging to Ross William
Ulbricht ("Ulbricht"), pending the outcome of this civil
proceeding

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by transferring the full account balance in each

wallet to a Bitcoin address controlled by the United States
(the "Computer Hardware Bitcoins")

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WHEREAS, beginning on or about November

6

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2013, and

continuing for 30 consecutive days thereafter, the United
States of America published notice on www.forfeiture.gov of
the seizure of the Computer Hardware Bitcoinsj
WHEREAS

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on or about November 8

2013 1 the United

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States of America served notice upon Ulbricht

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who is the only

person or entity reasonably believed to be a potential
claimant to the Computer Hardware Bitcoins

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by certified mail

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return receipt requested;
WHEREAS, on or about December 12, 2013, Ulbricht
filed a timely verified claim in this proceeding, asserting an
ownership interest in the Computer Hardware Bitcoinsi

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WHEREAS, no other individual or entity filed a
verified claim for the Computer Hardware Bitcoins before the
deadline to do so on January 6, 2014;
WHEREAS, the Government and Ulbricht agree that, due
to the volatile market for bitcoins, the Computer Hardware
Bitcoins risk losing value during the pendency of the
forfeiture proceedings;
WHEREAS, the Government and Ulbricht agree that the
Computer Hardware Bitcoins are to be liquidated or sold by the
Government before the conclusion of the forfeiture
proceedings, with the net proceeds of the sale to be held as
substitute res pending further order of this Court;
NOW, THEREFORE, IT IS HEREBY STIPULATED, ORDERED,
AND AGREED THAT, PURSUANT TO RULE G(7) (b) OF THE SUPPLEMENTAL
RULES FOR CERTAIN ADMIRALTY AND MARITIME CLAIMS:
1.

The United States and Ulbricht agree that the

United States may, in its sole discretion, sell any portion or
all of the Computer Hardware Bitcoins, on a date or dates and
in a manner to be determined by the Government.
2.

This Order does not obligate the Government to

offer any of the Computer Hardware Bitcoins for sale.
3.

Ulbricht represents that he is the sole owner

of the Computer Hardware Bitcoins.
4.

The net proceeds from the sale of the Computer
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Hardware Bitcoins will include all moneys realized from the
sale of the Computer Hardware Bitcoins except for any costs
incurred by the Government in connection with the sale.
5.

The cumulative net proceeds realized from any

sale of all or any portion of the Computer Hardware Bitcoins,
and any and all income or interest accrued thereon, shall be
the substitute res for the Computer Hardware Bitcoins.

The

net proceeds shall be deposited and shall be held by the
united States Marshals Service in the Seized Assets Deposit
Fund pending further order of the Court.
6.

Ulbricht represents that he has the sole

authority to enter into this Stipulation regarding the
Computer Hardware Bitcoins, and agrees to hold harmless the
United States from any claims filed in this action by third
parties alleging an interest in the Computer Hardware
Bitcoins.
7.

Each party agrees to bear its costs and

attorneys' fees.
8.

This Court shall retain jurisdiction in this

matter to take additional action and enter further orders as
necessary to implement and enforce this order authorizing the
sale of the Computer Hardware Bitcoins.
9.

The signature page of this stipulation may be

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executed in one or more counterparts and transmitted by
facsimile or electronic means.

Each counterpart will be deemed

an original, and all of them together will constitute one and
the same instrument.
AGREED AND CONSENTED TO:
PREET BHARARA
United States

By:
DAtE
One

New York,

ROSS WILLIAM ULBRICHT
By:
DRATEL,
Dratel,
9 Broadway, Suite

New York, New York 10006

SO~

HO~RABLE

J. PAUL OETKEN
UNITED STATES DISTRICT JUDGE
SOUTHERN DISTRICT OF NEW YORK

~~. ).. 7, Zl)/~
DATE

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