Tags: bitcoin | digital currency | silk road | foreign exchange

US to Hold Third Auction of Bitcoins Seized From Silk Road

Wednesday, 18 Feb 2015 02:13 PM

The U.S. plans to sell 50,000 bitcoins on March 5 in the third auction in the past year of the digital currency seized after closing down the illegal Silk Road marketplace.

The winning bidders will be notified on March 6, the U.S. Marshals Service said Wednesday in an e-mail statement. Billionaire Tim Draper and SecondMarket Inc. won the 80,000 bitcoins the agency auctioned off in June and December.

The bitcoin’s value has fallen to about $234 on Wednesday, according to the CoinDesk index, from $369 on Dec. 4, the date of the last auction, and $617 a year ago. Increased regulatory scrutiny, security breaches and closures of some bitcoin businesses have affected the price. That probably will reduce the interest in the March bidding, said Gil Luria, an analyst at Wedbush Securities in Los Angeles.

The new auction “is likely to attract mostly large existing investors in bitcoin, including the established bitcoin companies,” Luria said in an e-mail. “I would not expect the level of attention and participation from the first auction given the way the second auction played out.”

The bitcoins are part of a cache resulting from the shutdown of Silk Road, which was run by Ross Ulbricht. He is scheduled to be sentenced May 15 after being found guilty on Feb. 4 on seven counts in connection with the marketplace, where users could buy and sell illegal drugs and other unlawful goods and services, the Marshals Service said in the statement.


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The U.S. plans to sell 50,000 bitcoins on March 5 in the third auction in the past year of the digital currency seized after closing down the illegal Silk Road marketplace.The winning bidders will be notified on March 6, the U.S. Marshals Service said Wednesday in an e-mail...
bitcoin, digital currency, silk road, foreign exchange
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2015-13-18
Wednesday, 18 Feb 2015 02:13 PM
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