The funds were confiscated by the U.S. government because it was stolen funds connected to the silk road, i think it is a fair end to the case involving James Zhong and how he stole from the silk road, according to the reports, even the creator of the silk road was pleased with what James Zhong had done, and even sent him more BTC's, i guess stealing from an illegal organization may not be so bad . James Zhong had all his stolen BTC's confiscated, however, he was sentenced to only a year and a day in prison for the crime.