Bitcoin Auction News (Feb. 15, 2020) – The United States (US) Marshals Service has held two bitcoin selling events over the years that saw more than 2800 Bitcoins unloaded via public auctions.
Previous US Marshals Bitcoin Auctions
The first happened on Mar 2018, followed by a second five months later. They have announced a third, and possibly most lucrative bitcoin auction held by the US government body.
A single bitcoin price was only $380 when the last auction took place. Currently, BTC is trading over $10,000.
The US Marshals Silk Road & Bitcoin Connection
The previous US Marshals’ auctioned bitcoins were seized from now-defunct dark-web marketplace founder, Ross Ulbricht.
Mr. Ulbricht created Silk Road in 2011 and it quickly became the most popular medium to buy anything illegal online; from a kilo of cocaine to someone’s social security number.
However, on November 6, 2014 the US Marshals busted Ulbricht, shut down Silk Road’s operations permanently and arrested Ross William Ulbricht.
In addition to a large sum fiat currency, they seized 150,000+ bitcoins. Ulbricht is now serving 35 years in federal maximum security prison.
The newly announced US Marshals Bitcoin Auction
The US Marshals recently announced a new Bitcoin auction will occur on February 18, 2020. This time around, the Marshals will sale 4,000 seized bitcoins worth more than $40 millions.
There are no details on how the new BTCs were acquired, but the United State’s government has been very busy lately going after and charging both individuals and crypto companies with fraud.
Will the new US Marshals’ bitcoin auction cause a flash crash via dumping?
Bitcoin’s price took 10%+ hit during the two previous auctions held by the US Marshals. There are speculations this one may have the same temporary affect on BTC’s price.
@TradeorDie31, a crypto user on twitter posted a flow chart of what occurred during a previous BTC auction held for two days (Jan. 11-12, 2018), where more than 3,813 were auctioned off.
US Auction 4000 #BTC On Feb 18th, 2020. Every time the US has come out with an auction, they’ve got the market to wick down and slam it up a few 100 Points. Gear up for the dips, it’s just an opportunity to buy. Idea Generator : @SalsaTekila Mark the date pic.twitter.com/00rIHBbbIi
— Trade or Die (@TradeorDie31) February 12, 2020
How to participate in the US Marshals bitcoin auction
According to the US Marshals’ website, anyone or company wishes to participate must deposit $200,000 in advance.
One can expect a lot of competitions for those coins. The Winklevoss twins, Cameron and Tyler and billionaire tech investor, Tim Draper won all the Bitcoins in the last auctions.
Faith Obafemim tech lawyer, digital content consultant, blockchain & crypto researcher, emerging tech tech writer. She is currently doing research on the implementation of the African Continental Free Trade Agreement (AfCFTA) on the blockchain and recommending Kleros as a dispute resolution layer.