Winning Bidder Claimed 2,700 Bitcoins at USMS Latest Auction

An anonymous bidder, who won the bid, bought 2,700 bitcoins at the United States Marshal Service (USMS) auction held recently. It is roughly worth 1.6 million dollars.

The government had announced an auction of the 2,719 bitcoins that were seized during many raids and cases like those of the Silk Road, the online black marketplace.

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.

>> Click here to find the Silk Road 3.0 Guide <<

bitcoin bidding
USMS, US Marshals. A winning bidder claimed 2,700.

The auction was announced at the beginning of the month, and the USMS confirmed that four bids were received for the same. The auction took place on August 22 between 13.00 and 19.00 UTC.

This auction was the smallest event held by the USMS. There were only five registered bidders for the auction of the 2,700 bitcoins.

Those who wished to take part in the auction were required to register before August 18. They were also required to deposit a fee of $100,000.

The USMS auction that took place in November last witnessed a higher turnout when 44,000 bitcoins were auctioned off.

The bitcoins auctioned off were worth $14.6 million and there were 11 bidders. Like in previous auctions, USMS also announced that the winning bidder could choose to reveal their identity if they wished to do so.

Previous bidders for the 44,000 bitcoin auction include investor Tim Draper, OTC trading firm Cumberland Mining, and the Bitcoin exchange itBit among the 11 bidders.

The USMS auction process is conducted in such a way that the winning bid is not made visible to anybody that makes a bid in the auction.

Earlier in June, Ernst & Young in Australia auctioned off 24,500 bitcoins that were confiscated from a Silk Road user.

The Source of the Bitcoins

bitcoin
An anonymous bidder purchased 2700 bitcoins worth about $2 million in an anonymous auction held by US Marshals Service

Silk Road was an online darknet marketplace that used bitcoins for its transactions.

Users traded and bought products on the site using bitcoins. A number of bitcoins were confiscated from the site creator, Ross Ulbricht.

He was sentenced to life in prison last year in May. Out of the 2,719 bitcoins that were auctioned off, a majority of them came from investigations related to the Silk Road.

About 1,300 of the auctioned bitcoins were related to Mathew Gillum, a Silk Road drug dealer.

This individual was sentenced to nine years in prison in the year 2015.

The bitcoins were seized in a civil case. 2.8 bitcoins only belonged to Ross Ulbricht, the founder of Silk Road.

Ross was convicted in May 2015 and sentenced to life in prison for running the website.

65 bitcoins came from a former DEA agent Carl Force IV, who was part of the Silk Road investigations.

He stole many bitcoins during the investigation and was sentenced to 6.5 years in prison. About 665 bitcoins were related to the Sean Roberson case.

This man from Florida allegedly traded stolen credit and debit card details through an online shop that he had set up.

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US Marshals To Auction Over 2,700 Silk Road Bitcoins

The United States Marshals Service recently made its plans to auction more than 2,700 BTC that’s worth over $1.6 million, taken from several cases, including those stemmed from the investigations on the Silk Road and its founder Ross Ulbricht.

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.

>> Click here to find the Silk Road 3.0 Guide <<

US-Marshalls-50000-Bitcoin-Auction-complete-Ulbricht2-825x510USMS tells how the soon-to-be-auctioned bitcoins are linked to some civil, administrative, and criminal matters pursued by the US government in previous years.

The highest profile among them is the case involving the Silk Road dark web marketplace.

Bitcoin Sources

As the first ever darknet market, the Silk Road soon became a notorious online platform where users were able to buy and sell illicit drugs and various other goods and services.

In line with maintaining anonymity is the use of bitcoin for all transactions, which were ultimately confiscated from the site’s creator, Ross Ulbricht.

Ross Ulbricht was sentenced May last year to life in prison, following the conviction of running an online marketplace which facilitated over $200 million anonymous drug sales transpiring online within the dark web.

The sentence is currently being appealed.

The Silk Road creator’s case is just one out of 9 cases from which a total of 2,719 BTC was forfeited, and now subject to the latest auction according to the US Marshals Service.

In fact, only around 2.8 bitcoins in the upcoming auction actually stems from Ulbricht’s case.

USMS reveals that the bitcoins accounting for 1,294 stem from a civil case associated to Matthew Gillum, a drug dealer from Silk Road who’s been sentenced to 9 years in prison in 2015.

The federal law enforcement agency tells of another 65 BTC coming from the case of former U.S. DEA agent Carl Force IV.

He was sentenced to 78 months back in October 2015 for stealing bitcoins while investigating the Silk Road.

Another 664 out of the 2,719 bitcoins came from Sean Roberson’s case, who allegedly created an online shop catering to counterfeit debit and credit cards.

This Florida man was sentenced to prison for 78 months in November 2015.

Auction Details

bitcoin-auction-participantsThe bitcoin auction will be held this August 22.

Those who wish to participate must register by August 18 and are required to deposit $100,000.

Potential participants outside of the U.S. are welcome as long as they do not belong in the “Specially Designated Nationals” list by the Treasury Department.

USMS said that winners would be notified right on the same day.

The auction is deemed a blind process, meaning the winning bid is not visible to those who make an offer.

August 22 marks the latest of several auctions held by the agency in the past two years, counting four from June 2014 – November 2015 with the Silk Road auction as the last one held during late 2015.

Going back to June, 24,500-bitcoin cache was auctioned off by Ernst & Young in Australia, confiscated from a former user of Silk Road originating from the country.

To date, bitcoin’s legal status may be in a grey area in most parts of the globe. Federal government auctions have increased its legitimacy in the US.

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Australia To Auction 24,518 BTC Confiscated From Silk Road User

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.

>> Click here to find the Silk Road 3.0 Guide <<

ross-ulbrichtRoss 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.

Australia To AuctionAccording 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.

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Fourth And Final Silk Road Bitcoin Auction

ANNOUNCEMENT: Since the Silk Road 2.0 bust by the feds a few other Darknet Markets have fallen. Silk Road 3 is up and running with a big selection of goods.

>> Click here to find the Silk Road 3 Guide <<

The US government on Thursday, 5th November 2015 held its final auction of bitcoins which were confiscated during the prosecution of Ross William Ulbricht, a Penn State graduate who authorities say created and run Silk Road. Before it was shut down in October 2013, Silk Road operated for over 2 years, generating more than $214 million in sales of drugs and other illegal goods using bitcoins.

Score Card "88"
The United States Marshals Service (USMS) said the 6 hour online auction it held on Thursday from 8am to 2pm EST for approximately 44,341 bitcoins worth over $17.2 million, drew eleven registered bidders who submitted a total of thirty bids on twenty two blocks of the bitcoins during the auction. Twenty one of the blocks were for 2,000 bitcoins, while the final block included 2,341 bitcoins. Participation was once again down sharply from the 1st auction of approximately 30,000 bitcoins, where forty five registered bidders placed sixty three bids.

The billionaire venture capitalist and founder of Draper University, Tim Draper, who was successful in 2 prior bitcoin sales, indicated that he wasn’t participating in the fourth auction. It was earlier speculated that Genesis Trading, a subsidiary of the Digital Currency Group, which is run by Barry Silbert and another bitcoin hedge fund known as Binary Financial will participate in this auction. According to Lynzey Donahue, a US Marshals Service spokeswoman, no further details will be released until all the bitcoins have been transferred to the winners.

Although the Silk Road crackdown was part of a joint-operation between the US Secret Service and the United States FBI, it was the USMS which was given the charge of handling the confiscated goods from Silk Road that was mostly bitcoins. Approximately 174,000 bitcoins were seized from the Silk Road. The US Marshals Service had previously held a total of 3 auctions where most of the Silk Road bitcoins were sold to qualified members of the US public.

The first auction which was held in June 2014 had 30,000 bitcoins on sale and attracted forty five bidders who made sixty three bids. The first portion of the bitcoins was won by Tim Draper.

The second auction which was held in December 2014 had 50,000 bitcoins on sale but it recorded a lower-turnout when compared to the 1st auction. It had only eleven bidders who made twenty seven bids. Most of the second auction’s bitcoins were purchased by the Bitcoin Investment -Trust bidding syndicate, leaving Tim Draper with the only remaining 2,000 bitcoins.

The third auction which was held in March 2015 2014 had another 50,000 bitcoins that were sold to the highest bidder. In spite of the fact that there were fourteen bidders who competed for the Silk Road bitcoins in the third auction, almost 47,000 or 94 percent of the bitcoins were purchased by Cumberland Mining. ItBit exchange was able to secure 1 block of 3,000 bitcoins.

The fourth auction came amid a surge in the price of the virtual currency, with the price of one bitcoin hitting $500 on Wednesday 4th November 2015 for the first time since August 2014. The price later fell, and by late Thursday, 5th November 2015, one bitcoin was worth $388, according to the Bitstamp exchange.

Bitcoins
The bitcoins that were sold in the fourth auction were the last remaining in custody in connection with the federal prosecution of Ross William Ulbricht alleged by the FBI to be the owner and founder of Silk Road and the person behind the pseudonym “Dread Pirate Roberts.” In October 2013, Ross Ulbricht was arrested by the United States authorities. In total, 144,000 bitcoins were seized from Ulbricht’s laptop. Additionally, 29,655 bitcoins were held in wallets on the Silk Road at the time it was shut down. Hence, the total amount of bitcoins that were seized during the Silk Road crackdown is around 174,000 bitcoins. On 27th January, 2015, Ross William Ulbricht and the US government agreed to the sale of the seized bitcoins during his trial. According to the agreement, Ross allowed the US to sell all or any portion of the seized bitcoins. Additionally, the manner of the sale of the bitcoins was left to be determined by the US government. Ross was sentenced to life-imprisonment of twenty years without the possibility of parole on 29th May 2015. He’s jailed in the Metropolitan Detention Center, Brooklyn. Ross Ulbricht has also been ordered to a civil-asset forfeiture of over $183 million.

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Number of Bidders Declines In Second US Marshals Bitcoin Auction

If you want to visit Silkroad 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 Silkroad 2.0. Silkroad 3.0 is ALREADY live and there will be more info about it here soon.

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

United States Marshals (Police)The latest data released by United States Marshals Service (USMS) on the auction of 50,000 bitcoins (BTC) seized from alleged SilkRoad owner Ross Ulbricht states that there has been a decline in the total number of bidders in the second bitcoin auction held on December 4, 2014, compared to the first SilkRoad auction held in June. This data was distributed via email by USMS since it is the agency entrusted with administering sale of confiscated property from federal law enforcement agencies.

BitcoinsA total of 45 registered bidders placing up to 63 bids is what the first Silkroad bitcoin auction experienced apart from the widespread coverage by the US media, which experts depict had a considerable effect on the bitcoin market. When you compare this to December 4th 50,000 BTC auction (roughly $18.6m), where only 11 registered bidders participated in the auction submitting just 27 bids, which was less than half what was submitted on the first auction. Registered bidders decreased by a massive 75% while the total number of bids went down by 57%.

Some of the experts have argued that the low turnout in the second Silkroad bitcoin auction was as a result of the lesser bidding window, which was six hours less (8 am – 2 pm) compared to the 12 hour period issued in June (6 am – 6 pm).

Bitcoin’s investment community earlier came forward to report that the interest in the SilkRoad BTC had declined among its members arguing that the general decrease in complexity when it comes to buying large blocks on open market may have contributed to the lack of interest.

Increased participation by companies in bitcoins bidder syndicates is also considered to be a possible reason for the decline with the December 4th auction having at least 2 syndicates take part. This was less from June’s bitcoin auction. The good news is that the USMS auction had little or no effect on bitcoin price, which went down by almost 1% on CoinDesk BPI. According to the USMS, there is an additional 94,000 Silkroad bitcoins to be auctioned in a few months’ time. The official date is yet to be released.

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Familiar Participants Will Be Taking Part Once Again In The Second US Marshals Bitcoin Auction

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. <<

BitcoinsThe US government’s planned second auction to liquidate 50000 bitcoins its agencies seized from the alleged mastermind of Silk Road, Ross Ulbricht, seems to draw a parallel with the initial auction. This follow up action is attracting the same buyers who took part in the initial offer of 30000 bitcoins, also seized from the alleged dark net bazaar.

Some of the noteworthy participants who took part in the initial sale and are expected to make another dash in the sophomore auction include Bitcoin Investment Trust, Binary Financial, Pantera Capital, Bitcoins Reserve, Mirror and American venture capitalist Timothy Cook, known in the bitcoin circles as Tim Draper. It appears the two overwhelming reasons for participation are financial strategy and media attention though many bidders admit the auction may receive a little less of the latter as compared to past sales.

BitcoinStrategy is still important considering the interest bitcoins continue to generate as a preferred investment opportunity. Bitcoin’s maturing market however makes auctions less and less advantageous and this is even more so now that the currency’s customer base has slightly gone down.

The 50000 Silk Road bitcoins to be offered in this second auction is only about a third of what was seized from Ulbricht. The US Marshals Service confirms it will sell the remaining in days to come though it has not set a date. Despite the auction, the liquid proceeds are still a subject of courtroom contests as the alleged Silk Road mastermind says he obtained the currency through lawful means.

About five bitcoin powerhouses are on record with public announcements alluding to their participation in this second auction. Tim Draper’s reasons for his interest in Silk Road’s heist are attractive market price coupled with the currency’s potential as a distortive technology. One participant in the summer auction who would prefer to stay away from this second offer citing important other important reasons as the cause, is Bitcoin Shop.

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