U.S. Marshals will auction off over $11 million in Bitcoin

Scheduled to take place on March 5, 2015, the United States government will be placing another 50,000 Bitcoin on the auction block in segments of 2,000 and 3,000 Bitcoin. Currently valued around $235 a Bitcoin, the market value of the entire block of Bitcoin comes in around $11.8 million. Whilethe value of Bitcoin will likely change before the start of the auction, the price of Bitcoin has been fairly stable for the last 30 days after falling to a low of $177 during mid-January.

This block of 50,000 Bitcoin was seized fromRoss Ulbricht, the allegedcreator of the Silk Roadonline black market. Recently convicted on a number of charges related tonarcotics,Ulbricht had claimed that he wasnt responsible for the illegal activity that occurred on the site. Afederal jury disagreed andUlbricht is now facing a possible life sentence for his role in Silk Roads operation. His official sentencing will occur on May 15, 2015.

To register for the Bitcoinauction being run by the U.S. Marshals service, you will need a hefty cash deposit to prove eligibility. The2,000 Bitcoin block requires a deposit of $100,000 and the3,000 Bitcoin block requires a deposit of $150,000. A total of 20 blocks will be auctioned off on March 5 and the winning bidders will be notified by the end of the following day.

This is actually the third auction for Bitcoin related to the Silk Road seizure. During June 2014, theU.S. Marshals service auctioned off roughly 30,000 Bitcoinand an additional 50,000 were auctioned off during December 2014.

Interestingly, if theU.S. Marshals service had auctioned off the entire allotment of Bitcoinshortly after the initial seizure during October 2013, the value of the entire block would have been worth approximately $125 million. Assuming theU.S. Marshals service haveobtained current market value for previousauctions and will do the same for next months auction, the approximate revenue generated from the sales will total around $45 million.

Link:
U.S. Marshals will auction off over $11 million in Bitcoin