The US Government to Auction 50,000 Bitcoin from Ross Ulbricht on March 5

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The US Government to Auction 50,000 Bitcoin from Ross Ulbricht on March 5

In an announcement, the US government says that it plans to auction 50,000 Bitcoin that it seized from Ross Ulbricht, the owner of Silk Road, the underground drug peddling website. The auction will take the next month on March 5. The government has done a couple of auctions earlier as well wherein it received handsome money from the interested parties.

The mastermind of the online black market known as Silk Road, Ross Ulbricht has been convicted for the crime and the money he obtained through the business has been seized. The government informs that the auction will be conducted by the US Marshals Service. This is the third for Bitcoin seized in connection with Silk Road.

The government authorities had seized the Bitcoin from Silk Road owner Ross Ulbricht who let customers buy and sell drugs and other illegal goods beneath the radar of law enforcement. Earlier this month, a federal jury in Manhattan on found Ulbricht guilty of narcotics and other charges for helping to enable about $200 million of anonymous online drug sales using Bitcoin.

ForexMinute has reported extensively about the whole Silk Road business model and modus operandi of Ross Ulbricht, the 30 year old, who ran the business under the pseudonym “Dread Pirate Roberts” before the website was shut down in October 2013. He concedes that he created Silk Road; however, he says he was not responsible for illegal activity conducted there.

The statement issued by the US government says that the marshals service will auction the 50,000 Bitcoin in 10 blocks of 2,000, and 10 blocks of 3,000. The bidders must register for the six-hour auction by March 2, and winners will be notified on March 6. Currently, Bitcoin is trading above $240 in exchanges.

Bitcoin has lost its Value against Dollar over the Months

Interestingly, the Bitcoin’s exchange rate was above $1000 when these were seized in 2013. The government could have benefited extensively if had auctioned them then. The more it delayed the exchange rates fell dramatically. Even the earlier auctions of the seized Bitcoin fetched better prices for the government.

For instance, when the marshals service auctioned 29,655 Bitcoin from Silk Road last June and 50,000 more in December, they were respectively worth about $601 and $369 each. Now, it looks like the delay has just cause them lose value over the months.

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