US Marshal Service To Auction Off 50K Bitcoins From SilkRoad Haul

The United States marshal service has announced it will be holding the third Bitcoin auction of the Bitcoins seized from the Silk Road owner Ross Ulbricht’s laptop. 50,000 Bitcoins are to be auctioned on March the 5^th and the auction closes on the 6^t .Now the Bitcoins which are equal to around $12 million are to be auctioned .

The owner, Ross Ulbricht, was convicted on charges of being involved in the ownership of Silk Road. Silk Road was a large online marketplace where virtually anything could be sold including illegal drugs and weapons. On Silk Road around 70% of the products were drugs however they had some limits and items including stolen credit cards, assassinations and weapons of mass destructions such as chemical and nuclear weapons. However some products on the site were legal such as jewellery and art .Silk Road was shut down in October 2013 after it was found to be selling illicit goods. Silk Road 2.0 was created and promised to have higher security. It was launched by the administrators of the original Silk Road and recreated the original site setup. The administrators also took the caution of creating copies just in case it was shut down again. He is expected to face 30 years to life imprisonment. He is expected to go on trial on the 15 May.

Last year there was an auction which sold off 30,000 Bitcoins which were also in connection with Silk Road. Almost all the Bitcoins were sold to Tim draper and whether or not he wants to participate in this auction is unconfirmed. In the last auction the price of one Bitcoin was around $600 but now it is around $250. However the auction could not have come at a worse time as Bitcoin prices have been falling rapidly and have been really volatile recently. One of the main differences between the two auctions, not including the obvious amount and price change of Bitcoin, is that in the last one the marshals explicitly barred people from acting on behalf of Mr .Ulbricht but in the latest one has agreed to auction his Bitcoin.

The price drop has meant that many buyers won’t be interested but if the Bitcoins do keep getting sold the price could take a few hits. To be eligible to participate in this auction they must first prove their identities and then show they have enough money to participate. They must also prove they are not in any connection with the owner.  Bidders in this latest auction will receive a six hour period to deliver their sealed bids for the Bitcoins.  The auction was supposed to be private but the SSMS accidentally CC’d some potential buyers answering questions on the auction.  The Bitcoin will be sold in groups ranging from 2,000-3,000 Bitcoins per selection.