Bitcoin blow for drugs accused

US attorneys in Utah prosecuting a multimillion-dollar opioid drug ring are moving quickly to sell seized bitcoin that has exploded in value to about US$8.5 million (NZ$12.1m) since the alleged ringleader’s arrest a year ago.

The US Attorney’s Office for Utah cites the digital currency’s volatility in court documents pressing for the sale.

The bitcoin cache was worth less than US$500,000 when Aaron Shamo was arrested on drug charges, but the value of the digital currency has skyrocketed since then.

For federal prosecutors in Utah, sales of seized assets such as cars are routine, but bitcoin is new territory, spokeswoman Melodie Rydalch said.

Shamo is accused of selling pills containing the powerful opioid fentanyl on the dark web to thousands of people all over the US, at one point raking in US$2.8m in less than a year.

The 500,000-pill bust ranked among the largest of its kind in the country, and authorities also found US$1m of cash stuffed into rubbish bags.

Shamo has pleaded not guilty to a dozen charges.

The proceeds of the bitcoin sale will be held until the case is resolved, and then decisions will be made about where the money goes, Rydalch said.

Although there’s no global consensus over the status of bitcoin – debate rages whether the virtual money is an asset or a currency – that hasn’t stopped authorities in nations including the US, Australia and South Korea from auctioning digital hauls seized from cybercriminals.