The US Marshal has announced its plans to auction about BTC3,813 (bitcoins). This is about $52 million using the latest price of bitcoin as at today.
According to a statement by the American law enforcement agency, the bitcoins were seized from various criminals and proceeds of various seizures.
In a statement confirming the auction, the law enforcement agency said:
“This sealed bid auction for approximately 3,813 bitcoin separated into three series: Series A (5 blocks of 500 bitcoins), Series B (5 blocks of 100 bitcoins) and Series C (1 Block of approximately 813 bitcoins).”
It is apparently not the first time the US Marshals will be auctioning out seized bitcoins. According to Bitcoin.com, a website that publishes news stories on bitcoin, “The agency sold 50,000 coins in 2014 for $373 per coin. That USMS bitcoin sale only captured a total of $18Mn USD, and most of those Silk Road bitcoins were purchased by Tim Draper and the firm Second Market.”
Non-American citizens will not be eligible to participate in the auction as there are strict guidelines as to what qualifies a bidder and the Bitcoin address that can be used to receive a successful bid.
Apart from that, participants will have to deposit a minimum of USD200,000 in a US bank that must be confirmed after the bidder has been certified by the agency.
The catch for bidders is that the bitcoins will be sold out for a fraction of the actual market price which will be a bigger gain than the stress of applying and passing through the bidding process. However, there are concerns that winners will be identified and the Inland Revenue Service might target them for future tax filings.