Ride the Lightning

Want to Buy Some Bitcoins? The Government is Having an Auction!

November 19, 2014

I'm not sure why this tickles my funny bone, but I love the idea of the United States Marshals Service holding an auction for 50,000 Bitcoins, worth around $19 million. The Bitcoins were seized in connection with the online bazaar called Silk Road which was shut down in October 2013 after authorities said it was online marketplace for illegal drugs and other illicit activities.

The latest auction is for Bitcoins found on computer hardware belonging to Ross Ulbricht, who is accused of creating Silk Road. Prosecutors and Mr. Ulbricht agreed in January that the government could sell the virtual currency it had seized.

Bidders in the government’s second Bitcoin auction will have a six-hour window on December 4th to submit a sealed bid for the coins, which have been broken into several lots. The first series contains 10 blocks of 2,000 Bitcoins, while the second series contains 10 blocks of 3,000 Bitcoins. Bidders can participate in both series and can bid on multiple blocks.

Registration for interested parties to participate in the auction began on Monday at 9 a.m. and will end at noon on December 1st. The Marshals Service will notify eligible bidders on December 2nd, with the winner, or winners, notified on December 5th.

As was the case before the first auction, bidders must prove their identities and that they have a required amount in cash. They also have to certify that they are not affiliated with Silk Road or Mr. Ulbricht.

So if you were wondering what to get that special someone for Christmas, you may have found a unique gift indeed.

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