US to auction Bitcoins seized from the Silk Road on June 27th

The US has announced that it will sell its hoard of accumulated Bitcoins from Silk Road in a public auction on June 27th. The 30,000 Bitcoins on sale have a total value of around $18 million and came into the possession of the US when the FBI closed down the illegal Silk Road website and seized the assets of its founder, Ross Ulbricht. This sale does not include Ulbricht's Bitcoins though.

Details on participating in the auction are available on the U.S. Marshals Service website. All prospective bidders must register between June 16th and June 23rd. If you were thinking of partaking in the auction, an upfront deposit of $200,000 is required.

The sale will begin at 6:00 AM EDT and end at 6:00 PM EDT, taking place online. The auction consists of nine separate blocks of 3,000 Bitcoins each with an additional block of 2,656.5 Bitcoins available that comprises the remainder of the offered amount. The winning bidder for each block will be notified by 5:00 PM EDT on Monday 30th June.

The FBI's closure of Silk Road last year attracted much attention as the site was used by criminals worldwide to order resources including drugs and firearms. Transactions made on it were untraceable as crypto-currency, Bitcoin, was the only means for completing transactions. The site could only be accessed through a hidden page on the Tor Network and relaunched as Silk Road 2.0 soon after the FBI closed it down.

If you are successful in bidding for a block of 3,000 Bitcoins, then you could end up profiting in the long term even after the $200,000 deposit. The value of Bitcoin fluctuates dramatically throughout the year and exchange rates have been consistently low since the collapse and subsequent bankruptcy of the Mt. Gox exchange earlier this year. Even so, 3,000 Bitcoin is still worth around $1,776,000.

Source: U.S. Marshals Service via Engadget UK | Image via U.S. Marshals Service

Report a problem with article
Previous Story

Microsoft details its next update for the Xbox One

Next Story

Razer offering Nabu wearable for $1 for 500 beta testers and $50 for developers

14 Comments

Commenting is disabled on this article.

With this large sum of bitcoins the US gov could really hurt bitcoins chance of survival. I guess they don't really see it as a treat yet or they don't want to be so obvious.

tytytucke said,
With this large sum of bitcoins the US gov could really hurt bitcoins chance of survival. I guess they don't really see it as a treat yet or they don't want to be so obvious.

The government has already classified them as a commodity and have required people pay taxes on them. I think that, as far as the government is concerned, the issue of bitcoins are resolved.

Now here's the significance of this: if the US government is willing to accept US dollars in exchange for Bitcoin, Bitcoin now has legitimate value as a currency.

So watch for it to soon appear on NYSE, Nikkei and other global markets / exchanges.

abecedarian paradoxious said,
Now here's the significance of this: if the US government is willing to accept US dollars in exchange for Bitcoin, Bitcoin now has legitimate value as a currency.

So watch for it to soon appear on NYSE, Nikkei and other global markets / exchanges.

The US government treats bitcoins as a commodity, and by selling them in an auction they support that view. Do you ever see the US government auction off the $15 million they seized while arresting a drug lord or some such?

And that's how the US Gov makes it's money these days... Confiscating in the name of the law (as a guise) only to sell it off and make "Guaranteed" legal profit. bwahahahahahaha

Izlude said,
And that's how the US Gov makes it's money these days... Confiscating in the name of the law (as a guise) only to sell it off and make "Guaranteed" legal profit. bwahahahahahaha

Hard to state the the Silk Road wasn't shut down in the name of the law.

Izlude said,
And that's how the US Gov makes it's money these days... Confiscating in the name of the law (as a guise) only to sell it off and make "Guaranteed" legal profit. bwahahahahahaha

Obviously you were not following the Silk Road news. Shutting them down was not a guise, and I doubt that the money they collect from these bitcoins will compensate for all the money spent on bringing Silk Road down.

Smart move here, take something that people are willing to give up actual cash for and think is actually worth something and turn it into real value.