The government has filed a motion in the case against Ross Ulbricht, the founder and operator of the Silk Road who is serving life in prison, seeking to retain the seized Bitcoin. At the time of seizure in November 2021, the Bitcoin were notionally worth $3.36 billion. On the date the charges were announced, they would be notionally worth $1.06 billion.
U.S. Attorney convicts individual in 2012 theft from the Silk Road, announces seizure of over 50,000 Bitcoin priced at more than $1 billion
- "U.S. Attorney Announces Historic $3.36 Billion Cryptocurrency Seizure And Conviction In Connection With Silk Road Dark Web Fraud", U.S. Attorney's Office for the Southern District of New York
Telegram later introduced some of the repossessed usernames for sale as pricey NFTs on their new "collectible usernames" market, dubbed Fragment. Although Durov had claimed that "70% of all Telegram usernames had been reserved in inactive channels by cybersquatters from Iran", and that the only usernames that were "withdrawn" had been out of use, users were given no warning or option to keep their names.
On October 27, Durov announced that "in a few days, we will also introduce the ability for users to sell their existing usernames on Fragment" — unwelcome news for those whose usernames were sold out from under them by Telegram.
Some of the usernames that have sold on the marketplace include brand names like Facebook (which sold for 60,000 TON, or ~$94,200), FIFA (sold for 600,000 TON, or ~$972,000), Amazon (sold for 262,500 TON, or ~$425,000), and Meta (sold for 404,000 TON, or ~$723,000). There is no indication the buyers are necessarily associated with the brands in question. Furthermore, the username marketplace is not available in the USA.
However, the Huobi crypto exchange has claimed that pNetwork's actions were not white hat, and that they profited $4.5 million from their actions. pNetwork rebutted that they had not made any money from the operation, and threatened to sue Huobi over the accusations.
Some traders who attempted to "buy the dip" and profit from the plunge in value of the GALA tokens were also upset with Huobi, when they found that the exchange had replaced their tokens with new, worthless $pGALA tokens.
The project was unusually frank in their announcement, writing on Twitter that the hack had "render[ed] the Treasury and the $SKYWARD token effectively worthless... We recommend users to withdraw their funds safely where they can and for the community to no longer interact with Skyward."
The enormous sale caused the token price to plummet from $0.082 to $0.016, an 80% decrease. The stolen tokens were nominally worth almost $2.8 million (priced at the value before the theft), but it's not likely the attackers were able to exchange them for that much given the lack of liquidity to absorb such a huge sale.
Deribit is also among the primary creditors of failed crypto hedge fund Three Arrows Capital, which defaulted on an $80 million loan from the exchange.