In order to participate in the auction, bidders must first register with the USMS by August 18 to be eligible to submit a bid on the Bitcoins worth $1.6 million USD (BitStamp). As well, bidders must deposit $100,000 before the auction via wire transfer, including a receipt to prove the transfer.
With a large portion of the prize forfeited coming from the Silk Road investigation, the USMS stated that only 2.8 BTC actually came from the United States v. Ross Ulbricht case while another 1294 BTC was from Matthew Gillum, one of Silk Road’s dealers. Another 65 BTC was from the Carl Force case, in which he was sentenced for stealing Bitcoins during the investigation of Silk Road.
Exchanges such as Kraken have a trade volume of around 23,000 BTC, with 2719 added, this might influence the bids.
Since bidders are buying at a $586 per BTC and the highest price in the last few months has been $750, it will be a bargain. If they hold and sell at a higher price, this auction will be profitable for the winner. Also, if they don’t sell, they keep a piece of history.
With this announcement by the USMS, this will raise the awareness of Bitcoin and might potentially increase trading volumes or price. Also, with the amount of Bitcoin transferred to the highest bidder, no one knows if they will hold onto their Bitcoin long-term or will sell once Bitcoin reaches another 3-month high
Other sources include the IRS, US Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security and Department of Treasury. The USMS also said that 664 BTC was from the Sean Roberson case. Prosecutors said he created an online store to sell counterfeit credit and debit cards. These might be the last Bitcoins for the Ross Ulbricht case for running Silk Road, the infamous Bitcoin-accepted online black market.
Totalling around 2719 BTC in one block, the Bitcoin comes from various sources connected to both criminal and civil cases. The auction will be online on August 22, 2016 from 8AM EDT to 2PM EDT according to the USMS in a statement.
During the 2014 USMS Silk Road auction of 30,000 Bitcoins, the Bitcoin price rose by $50 over the course of a day due to the interest of investors. For now, we must wait and see if the winner will hold or sell. Once they sell, the price for BItcoin should increase due to some 2719 Bitcoins placed at the same price.
During the auction, once a bidder places a bid, there can be no changing it. This is Bitcoin that is being auctioned which means that the winner will get the most volatile cryptocurrency to keep. There is a very high chance of increasing value.
$1.6 million in confiscated Bitcoin will be auctioned off in a single day by the US Marshals Service (USMS).
A 'Crypto Shopping Mall' Is Being Tested in Slovenia
A major shopping center based in Slovenia is widening a cryptocurrency payments pilot.
BTC City Ljubljana, located in Slovenia's capital of Ljubljana, will allow a group of 150 people to use crypto
Under $100: Litecoin Price Hits Fresh 2018 Low
The price of litecoin (LTC), the world's sixth largest cryptocurrency by market capitalization, fell to a fresh 2018 low on Wednesday.
Data from Bitfinex shows the cryptocurrency slipped to $97.0
Beyond Bitcoin: Thomson Reuters Data Now Tracking Top 100 Cryptos
Mass media and data giant Thomson Reuters is expanding its cryptocurrency sentiment data toolkit to cover 100 different coins, the company announced Wednesday.
Initially launched back in March, the
JD.com's Finance Arm to Issue Asset-Backed Securities on a Blockchain
JD Finance, a subsidiary of Chinese e-commerce giant JD.com, announced on Wednesday that it is planning to issue asset-backed securities (ABSs) on a blockchain.
According to a report from the Secur
Bitcoin Bulls Eye $6K Bottom After 4-Month Low
Bitcoin is still looking south, having hit four-month lows today, but the bearish momentum may wane due to short-term oversold conditions, the technical charts indicate.
More bears joined the party
Blockchain Is 'Revolutionary,' Says German Finance Regulator Chief
Felix Hufeld, chief of Germany's financial watchdog, has said blockchain technology is "revolutionary" and its applications could turn the entire financial sector "upside down."
Hufeld, who is pres
Banks' Blockchain Budgets Spiked 67% in 2017, Survey Finds
The global financial services industry spent a combined $1.7 billion on blockchain development in 2017, with institutions having increased their individual budgets for the technology by 67 percent in
Tether Manipulation Pushed Up Bitcoin's Price, Researchers Find
The U.S. dollar-pegged tether has been used to support bitcoin's price during market downturns, a new study published by University of Texas at Austin professors.
John Griffin and Amin Shams, of th