The US government has categorically stated that they are going to auction the Silk Road bitcoins that were seized in connection with civil forfeiture band criminal actions against Ulbricht in the Southern District of New York.
In a press release, the US Marshalls have indicated that the auction will take place during a 12 hour period on 27the of June 2014 and bids are now being accepted by emails from registered bidders. Those who want to bid for the bitcoins are already downloading the auction forms from the US Marshall’s official website in readiness for what will definitely be a big day in the United States.
The big question however remains whether the government is right to action the Silk Road bitcoins now that no conviction has been done yet. Those Silk Road bitcoins have already been ordered forfeited by the United States and Ulbricht charged with narcotic trafficking, money laundering and computer hacking. The most worrying part is that Ulbricht has not been convicted or found guilty of all these crimes at the moment yet the Marshalls are already preparing to go ahead with the auction.
Even though the US Government claims to have concrete evidence against the suspects, a problem is bound to arise should the courts rule in favor of the accused. In such a circumstance, the action by the government to auction the bitcoins before conviction will bring up several issues. It will seem as if the government had already convicted the accused even before the court’s verdict.
This move to auction those Silk Road bitcoins is therefore purely a premature one. The US government advisors should have advised the government to wait for the court ruling on the matter before embarking the auction. This auction is set to be carried out on June 27 and a lot of issue s will for sure arise even after the auction should the accused be found innocent.