Bitcoin Seized Worth $1.6 Million Will Auction By The US Government
Bitcoin Seized from Cases to Auction
Bitcoin seized from cases will auction by the US Government. This was announced last Monday, August 9, 2016. More than 2700 of seized bitcoin are up for grabs and this event will happen on August 22, this year. Interested bidders should register first on August 18 according to the Bitstamp Exchange to be counted. The Bitcoin to bid are now worth $1.6 Million. Many are interested to find out who will go out and participate. All of these coins are forfeited during the investigation of several cases. One of these cases is Silk Road.
Bitcoin Seized from Silk Road
Ross Ulbricht was sentenced to a lifetime imprisonment in May, 2015 for orchestrating a drug related scheme. Ross performs the said illegal activity through an online platform called the Silk Road. Authorities said, Ulbricht ran Silk Road and used Bitcoin in $200M drug sales online anonymously. He was still appealing his case.
When the government shuts down the said platform a few years ago, a numerous amount of Bitcoin was seized. According to the Marshall Service, only 2.8 of bitcoin came from the case of Ulbricht will be auctioned this month. There are 8 other cases from which the 2,719 bitcoin was obtained.
Other Cases Where Bitcoin Had Been Forfeited
According to the Marshall Service the amount of forfeited coins was accumulated from nine different criminal and civil or administrative cases and one of them as mentioned is the Silk Road.
Another bulk of Bitcoin came from the case of Matthew Gillum which amounting to 1,294 coins. Matthew case is related to the case of the drug dealer Silk Road. He was also sentenced last 2015 to nine years of imprisonment.
Another 65 coins came from the Carl Force case. He was formerly an agent of the Drug Enforcement Administration in the US. He was sentenced last October and he will be in prison for seventy-eight months. He was proven guilty of stealing Bitcoin during the investigation of the Silk Road.
Another case where bitcoin was seized came from Sean Robertson case. An amount of 664 coins was seized from this man whom the prosecutor said opened an online store for counterfeit debit and credit cards. He was sentenced to 6 and ½ years in prison last November 2015.
This is not the first time an auction was held by the US government for the forfeited coins. This is just the latest digital currency auction from the Marshall Agency. There have been four other auctions that have been completed in the past. This is from June 2014 until November 2015. It was said that this is the final auction in these cases.
Aside from watching if investors will be interested in the said auction, people in the industry are also on the look out if the upcoming auction will create an impact on the Bitcoin price. It will be a great show to watch how the bidders will value the Bitcoin.