The Australian authorities will be auctioning off 24,518 bitcoins estimated to be worth $12.9 million; these bitcoins were originally seized from a user of the now defunct darknet marketplace Silkroad. The auction will be held by Ernst & Young global professional services company.This sale will mark an end to a process that started in late 2014 when authorities confiscated the bitcoins from a Silkroad user known as Richard Pollard. Pollard is a Melbourne resident who was later given an 11-year prison sentence on charges of commercial drug trafficking on Silkroad.
ANNOUNCEMENT: Silk Road 3.0 is BACK ONLINE and open for business. The team did a massive security overhaul on the site to try and make it more secure and anonymous.
Ross Ulbricht, the creator of the original Silkroad, was arrested in October 2013 and was sentenced to life in prison for running the infamous dark web marketplace Silkroad in 2015. The US Marshals Service auctioned off more than 170,000 bitcoins confiscated after the shutdown of Silkroad, which includes 144,000 bitcoins seized by the authorities from the Silkroad creator’s laptop. Last year,the final auction held by the US Marshals Service saw 44,000 Silkroad bitcoins put up for bidding.
Ernst & Young said in a press statement that the auction of bitcoins seized from the Silkroad user will be conducted over a 2-day period starting from 12.01am on 20th June 2016 Australian time. Just like other previous auctions held in the US by the US Marshals Service (USMS), all bitcoins for sale will be subdivided into blocks consisting of 2,000 BTC, which are approximately worth $1million,with 11 unique blocks up for sale. In a short statement, the company’s transactions partner, Adam Nikitins said that he’s optimistic that the bitcoin auction would attract buyers from both Europe and North America since they participated heavily in the last four open sales held in the US.
According to Nikitins, they are targeting sophisticated investors who appreciate the value of putting their money in an expanding digital asset.
Participants can directly submit their applications to E&Y for inclusion into the forthcoming bitcoin auction; deadline for submission is on 7th June,with Ernst & Young hoping to collect all necessary information for the event before 10th June.
This event is expected to take place just before official halving of anticipated rewards paid off to the bitcoin network’s transaction processors, which is scheduled to occur a month later in July. The timing of events suggests that economic fluctuations of bitcoin market rates play a huge role in determining when to auction seized cryptocurrencies.