The US Marshal’s Service Will Be holding An Auction For 50,000 Bitcoins Seized From Silk Road

If you want to visit Silk Road 2.0 then you will want to know that it was shut down by the feds on 5th November 2014 and the alleged operator “Defcon” has been arrested. The best alternative is Agora Marketplace, it actually has more listings than Silk Road 2.0. Silk Road 3.0 is ALREADY live and there will be more info about it here soon.

>> Click here to find the best alternative: Agora Marketplace. <<

Bitcoin MoneyIt is in the news that the US Marshal will be auctioning 50,000 bitcoins seized from Ross Ulbricht, alleged Silk Road mastermind. The total value of the bitcoins is approximated to be about $20 million. The bitcoins were seized from Ross Ulbricht last year.

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The auction is the second to be held by the agency in a span of less than five months. The auction is planned to be held on December 4. The first auction which the agency had carried out before resulted in the sale of a total of 29,656 Bitcoins. All these bitcoins were seized from Silk Road.

In the last sale of the Bitcoins which were seized from Silk Road, investor Tim Draper was identified as the highest bidder.

US marshall ServiceThe bitcoins that were last auctioned was seized from the digital wallets belonging to Ross Ulbrichtin October 2013. In the same time, Ross Ulbricht was arrested in connection to the Silk Road saga. During his arrest by the FBI, he agreed that the US government could sell the Silk Road bitcoins.

The sale of the bitcoins will be split into 2 rounds; there will be an offer of 10 blocks of 2,000 Bitcoins in the first round followed by another 10 blocks of 3,000 in the second round. Interested bidders who will have registered by making deposits of $100,000 will be allowed to have a six hour window on 4th of December to submit sealed bids for the bitcoins.

Just like the first case, all interested bidders will be allowed to disclose their identity and state clearly their connection to the alleged mastermind or Silk Road in general. The registration for the bids has started and will end in December 1st.

During the first auction that was held in June, the agency had promised to keep secret the name of bidders and winners but mistakenly revealed the names. This was due to a confusion that came up when the agency sent the list of the bidders to the interested parties instead of an email which was to inform the bidders about the progress of their bidding.

Although in the conflicting list that the agency sent only contained emails, it was possible to know the names of the bidders because the emails had names of the bidders. A good number of highly reputed people in the Bitcoin community were listed in the bitcoin bidding list.

Silk Road is an online drug marketplace where many people were using it to buy drugs of different types. From Silk Road, people were able to buy different types of drugs while hiding their identity. The alleged mastermind, Ross Ulbricht, is charged with sell of narcotics and computer hacking. The buys were usually made with the use of the digital currency bitcoin. During the time of the arrest of Ulbricht, there were more than $1 billion sales. Ross Ulbricht will be tried in court beginning January 5th and in case he is found guilty he can face up to 30 years in prison or even life prison.

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