U.S. Marshals To Auction 660 Bitcoins Worth Over $4.2 Million Next Month

The U.S. Marshals Service (USMS) has announced that it plans to auction off bitcoins worth over $4.2 million at the beginning of November.

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The U.S. Marshals Service (USMS) has announced that it plans to auction off bitcoins worth over $4.2 million at the beginning of November.

In an announcement published on the agency’s website this Wednesday, October 17, the USMS says that the sealed bid auction will seek to sell off 660 bitcoins.

Structure of the sale

The BTC is declared to have been forfeited by entities involved in criminal, civil and administrative federal cases.

The auction is scheduled to take place on November 5 and requires bidders to deposit $200,000 (about 32 BTC) by October 31, 2018, to participate.

As per the announcement, the auction will comprise two sections, with the first part consisting of six blocks of 100 bitcoins each. The second series includes of a single block of 60 bitcoins.

U.S. Marshals To Auction 660 Bitcoins Worth Over .2 Million Next MonthThe Marshals have also reminded potential participants that none of the bidders will have access to or be in a position to view other bids. More importantly, one cannot make changes to their bid once they have submitted it.

The auction process will be in three phases. The first phase is the bidder registration period that opens on Monday, October 22 and closes on October 31, 2018.

Eligible bidders will be those that submit all the required documents, pay the $200,000 deposit, and then receive confirmation from the agency.

Documents needed include a Bidder Registration Form, copy of a photo ID, and a copy of the Electronic Funds Transfer (EFT) receipt confirming payment of the deposit in a U.S bank.

The next phase comprises of an online auction that takes place on Monday, November 5, 2018 from 8:00 AM EST, with the winning bids, declared beginning midday same day. However, the USMS will not transfer any BTC until it confirms receipt of all payments for the purchases.

Forfeited Bitcoin

The U.S Marshals have listed 31 “sources” of the forfeited bitcoin, with some of the crypto seized in well-publicized lawsuits involving the U.S government against certain individuals.

In the latest USMS auction, some of the bitcoin to be auctioned off will come from a case involving the U.S government’s and two bitcoin traders convicted of money laundering.

Theresa Tetley and Thomas Mario Costanzo are both already serving prison terms; about 120 bitcoins from their cases will be auctioned. The agency has not provided specifics; it is estimated that 80 bitcoins are from Costanzo and 40 from Tetley.

There are also about 95 bitcoins listed as FBI administrative forfeiture and another 103 assets forfeited to the Drugs Enforcement Agency (DEA).

Third Bitcoin auction by the USMS

The planned auction will become the third of the year by the U.S. Marshals after the agency’s January auction that sold 3,600 BTC. That was followed up by yet another BTC auction in March, with 2,170 BTC sold.

While the sale of 660 bitcoins is not going to be the last, the U.S Marshals’ biggest ever BTC haul remains to be the 2013 Silk Road haul.

The agency seized 29,656 BTC (~189 million) from the site’s servers and a staggering 144,341 BTC (~$921 million) from Ross Ulbricht, who is serving a life sentence.

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