The US Authorities Will Auction 50K Bitcoin Seized from Silk Road

1
71

Bigstock

In an announcement the US Marshals Service says that it will auction 50,000 Bitcoin seized during the prosecution of the alleged owner of Silk Road, last year. According to the source from the organization, last year, when the Internet black-market bazaar where illegal drugs and other goods could be bought, they seized these digital currencies.

Informing the media the authorities in the US say that in pursuing the case, they recovered 173,991 Bitcoin that included more than 144,336 recovered from computer hardware belonging to Ulbricht seized at the time of his arrest. However, what would the actual value be of the Bitcoin is yet to be seen as there has been a tremendous fall in Bitcoin’s value, recently.

Nonetheless, moving ahead with its plan to auction the recovered Bitcoin, the US Marshals Service says that it has scheduled an online auction for Dec. 4. According to the organization, the Bitcoin’s valuation is estimated to be around $19.8 million. However, as has been said the value has fallen to record levels from $1000 last year to $400 now, it is a loss for auctioneers.

The organization did a similar auction earlier this year in June when it auctioned almost 30,000 Bitcoin that it seized during the 2013 raid on Silk Road. However, the Bitcoin that are to be auctioned on December 4 are the ones that were seized from the computer hardware of Ross Ulbricht, who prosecutors accuse of creating the underground website, Silk Road.

Bidders Need to Register by December 1

Though there was some agreement between Ulbricht and the government in January as a part of civil forfeiture proceeding, it took almost 10-11 months to move on to the auction. Then the two parties agreed to sell the digital currency stock wherein potential bidders for the 50,000 Bitcoin will have to register by December 1.

The 50K Bitcoin will be offered in 20 blocks and the winners will be notified on Dec. 5. Then there are 94,341 Bitcoin as well that are left with Ulbricht’s hardware; these too will be auctioned in the coming months. In the last auction Silicon Valley venture capitalist Tim Draper bought 29,655 Bitcoin.

Though Ulbricht, 30, has pleaded not guilty, his fate is still pending on the trial he is facing. Notorious as ‘Dread Pirate Roberts’ among online users, he faces trial for conspiracy, narcotics trafficking, and continuing criminal enterprise; his fate will be decided next year on January 5 when the next hearing comes.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com

  • Jabber0ne

    Expect this will drive price up to $750. Fasten your seat belts.