Bitcoin Price, Value, Exchange News: US Government Will Auction Silk Road Seizure Valued at $17M
The U.S. government is planning to auction off nearly 30,000 bitcoins valued at almost $17.4 million.
The U.S. Marshals Service said that the electronic currency, seized in a raid on the online marketplace known as Silk Road, would be auctioned on June 27.
A notice posted by the authorities stated that the auction would take place over a 12 hour period. Interested bidders will have to secure a deposit of $200,000 and they will have to provide an ID issued by the government together with a certification that they do not in any way have any affiliation with Ross William Ulbricht, the alleged former Silk Road boss. This is to ensure that the suspected criminals would not re-acquire the bitcoins, a currency that law enforcement considers to be similar to other assets.
The FBI seized the bitcoins in a raid last October on the internet-based marketplace known as Silk Road. It was a known center for trade and transactions that involved illegal drugs and other criminal activities. According to reports, the law enforcement agency said that they could simply have destroyed the virtual currency by deleting the private encryption keys that allow the transfer of the virtual currency. However, bitcoin is not illegal in the United States despite doubts of the legitimacy of the coins seized. Moreover, traditional banks prefer to stay away from the virtual currency as it is not backed by any central or government bank.
Ulbricht, also known as his internet moniker "Dread Pirate Roberts," has been fighting to re-acquire a portion of a larger batch of seized coins totaling 144,342 bitcoins, which is worth about $86.6 million. He was arrested in October for different crimes of conspiracy, including narcotics trafficking, money laundering, and computer hacking.
The alleged Silk Road boss is being held without bail and is scheduled for a court trial in November of this year. The agency said that the deadline for registration in auction is on June 23 at 12 p.m. EDT.
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