Skip to main content

U.S. Marshals are going to auction more than $11 million in Bitcoin

75 million dollars in bitcoins buried bitcoin
Scheduled to take place on March 5, 2015, the United States government will be placing another 50,000 Bitcoin on the auction block in segments of 2,000 and 3,000 Bitcoin. Currently valued around $235 a Bitcoin, the market value of the entire block of Bitcoin comes in around $11.8 million. While the value of Bitcoin will likely change before the start of the auction, the price of Bitcoin has been fairly stable for the last 30 days after falling to a low of $177 during mid-January.

This block of 50,000 Bitcoin was seized from Ross Ulbricht, the alleged creator of the Silk Road online black market. Recently convicted on a number of charges related to narcotics, Ulbricht had claimed that he wasn’t responsible for the illegal activity that occurred on the site. A federal jury disagreed and Ulbricht is now facing a possible life sentence for his role in Silk Road’s operation. His official sentencing will occur on May 15, 2015.

Related Videos

To register for the Bitcoin auction being run by the U.S. Marshals service, you will need a hefty cash deposit to prove eligibility. The 2,000 Bitcoin block requires a deposit of $100,000 and the 3,000 Bitcoin block requires a deposit of $150,000. A total of 20 blocks will be auctioned off on March 5 and the winning bidders will be notified by the end of the following day.

This is actually the third auction for Bitcoin related to the Silk Road seizure. During June 2014, the U.S. Marshals service auctioned off roughly 30,000 Bitcoin and an additional 50,000 were auctioned off during December 2014.

Interestingly, if the U.S. Marshals service had auctioned off the entire allotment of Bitcoin shortly after the initial seizure during October 2013, the value of the entire block would have been worth approximately $125 million. Assuming the U.S. Marshals service have obtained current market value for previous auctions and will do the same for next month’s auction, the approximate revenue generated from the sales will total around $45 million.

Editors' Recommendations

Amazon Prime members number more than 100 million in the U.S., survey says
Amazon Prime Day packages

Based on its own Amazon customer survey, securities research firm Consumer Intelligence Research Partners (CIRP) estimates there were 101 million U.S. Amazon Prime members as of December 31, 2018. CIRP further reported that 62 percent of Amazon's U.S. customers are Prime members.

Amazon hasn't given up exact Prime membership figures for the U.S., but in a letter to shareholders in April 2018, Amazon CEO Jeff Bezos stated that there were more than 100 million Prime members worldwide.

Read more
If we want to slow down climate change, we should change how we mine Bitcoin

Bitcoin celebrates its 10th birthday today, which is a major milestone for a technology that some skeptical pundits predicted would never make it out of single digits. However, while there is plenty to love about the world’s most popular cryptocurrency, people have also raised concerns about what the heavy hardware requirements of Bitcoin mining mean for our planet. Bitcoin mining requires massive amounts of electricity, which means enormous amounts of CO2 being pumped into the atmosphere as a result. In 2017 alone, the use of Bitcoin resulted in an estimated 69 million metric tons of CO2 emission.

But what does this mean in terms of climate change? Nothing good, unfortunately. According to a new study coming out of the University of Hawaii at Manoa, provided that Bitcoin continues its trajectory it could produce enough emissions to raise global temperatures by 2 degrees Celsius as soon as 2033. This holds true if Bitcoin is adopted at even the lowest rate at which other technologies have been incorporated.

Read more
Police bust a massive interstate SIM card hijacking ring
Guide to the eSIM

Krebs on Security has reported that Florida law enforcement have arrested a man accused of being part of an interstate cybercrime ring that used hijacked phone numbers and SIM cards to steal hundreds of thousands of dollars in cryptocurrencies and cash.

On July 18, Ricky Joseph Handschumacher was arrested in Pasco County, Florida, and charged with grand theft and money laundering. He has pleaded not guilty, though he has admitted to being part of the organization.

Read more