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.
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
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.