Third Bitcoin Auction Seized From Silk Road

ANNOUNCEMENT: Well it has happened! Another Silk Road Darknet Market has spawned after the demise of Silk Road 2.0. The new site is called Silk Road Reloaded and is utilizing different technology than its predecessors therefore a new guide for Silkroad Reloaded will be coming soon. In the meantime Agora Marketplace is still alive and kicking bigger than ever with more listings than Silkroad 2.0.

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

BitcoinsOn Wednesday, the U.S. government said that it is planning to auction the bitcoins seized from Silk Road, the online black market, for the third time. The decision is to auction as much as 50,000 bitcoins. The auction to be conducted by the Marshals Service in the U.S. on March 5, 2015 is the third auction of the seized bitcoins. In an email statement, the Marshals Service said that the winners of the auction will be notified on the next day.

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The auction of the seized bitcoins follows the February 4 criminal conviction of Ross Ulbricht, the mastermind behind the Silk Road which according to prosecutors, allowed customers to buy as well as sell drugs and several other illegal goods without the knowledge of the law enforcement agencies. The federal jury in Manhattan found the 30-year old Ross Ulbricht, who ran the Silk Road under the false name “Dread Pirate Roberts”, guilty of enabling approximately $200 million worth of online narcotics dealings using bitcoins. Ulbricht’s website, the Silk Road, was closed down in October 2013.

Bitcoin and Money CashFederal agents had seized 29,655 bitcoins at the time of closing down the Silk Road. The bitcoins seized from the server (buyers and sellers had stored the currency in the server) is worth approximately $7.2 million as of now. The government had seized as much as 144,336 bitcoins from Ulbricht’s computers. This is now valued at $35 million. In January, a judge had ordered that the bitcoins seized from Ulbricht be sold.

According to the Marshals Service, the bitcoins will be offered in blocks each of 2,000 and 3,000 bitcoins. Therefore, there will 10 blocks of 2,000 bitcoins and 10 blocks of 3,000 bitcoins. Bidders who want to participate in the auction must register by March 2, 2015.

The online virtual currency bitcoins has lost as much as 80% of its value after hitting a peak of $1,147.25 on December 4, 2013. On Thursday, the virtual currency was traded at $242 on bitcoin exchanges.

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