Feds to auction $1.6 million in bitcoin
The federal government will sell roughly $1.6 million worth of bitcoins recovered by law enforcement operations, the U.S. Marshals Service said on Monday.
The block of around 2,700 bitcoins — a digital currency — will be sold in late August. Potential bidders need to put down a deposit of $100,000 to gain entry into the auction.
The $1.6 million estimate is based on the current market price of $592 per bitcoin.
The Marshalls Service said that the bitcoins were linked to nine different cases, including the case against the founder of the Silk Road online marketplace. The cases span criminal, civil and administration prosecutions.
Authorities previously sold the bitcoins seized as part of the prosecution of that man, Ross Ulbricht. He was given a life sentence in 2015 for running the exchange, which was a popular place to anonymously sell drugs and other illicit goods.
The coins linked to the Ulbricht case were donated to government bitcoin wallets during his prosecution but did not belong to him directly, according to the Marshals.
The sale will be the fifth such auction held by federal authorities. The most recent, which involved bitcoins from the Silk Road investigation, was held in late 2015.
Bitcoin has drawn attention in recent years as the most prominent digital currency. Regulators have been forced to grapple with the rise of the technology as it becomes more widespread. Investors focused on digital currency have also hired lobbyists to press their case in Washington.
Source: THEHILL
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