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US Marshals Service is Auctioning off Bitcoin Worth Millions for the Second Time This Year

The extortion arm of the The United States Federal court responsible for the management of criminal assets and a myriad of other responsibilities initiated the registration period for bidders to participate in auction of Bitcoin that was obtained from criminals apprehended for the obstruction of law regarding the trade and purchase of cryptocurrencies. A total of 660 Bitcoins are to be put at auction which amount to a whopping $4,220,040, considering the current Bearish Market. The registration for the Bidding which started on 22nd October at 8:00 AM EDT and will subsequently end on October 31 at Noon EDT.

The assets auctioned by the US Marshals Service are not necessarily crypto as they deal with a number of cases related to real estate, valuable jewels, rare and legendary art pieces and antiques, limited collectible items, vessels and luxurious mediums of transport as well. Once they apprehend the stolen goods they distribute the proceedings made from the auctioned goods among the victims of theft and also the numerous other innocent parties. Last year in September, assets worth 1.8 billion were accumulated by the Department of Justice Asset Forfeiture Program, as was reported by the U.S. Marshals earlier in April this year, which was $0.3 billion more than the preceding year. $144.7 million was distributed among the victims and $332.5 million was allotted to the state and local law enforcement agencies.

The Bitcoin being auctioned have been confiscated from the following cases that have been mentioned below. The complete list can be found here.

  • HSI-USCBP Administrative Forfeiture of 1 Bitcoin
  • United States v. Thomas Mario Costanzo (Case No. 17-585)
  • United States v. Loui Ong (Case No. 17-191)
  • United States v. Anton Peck (Case No. 16-cr-171)
  • HSI-USCBP Administrative Forfeiture of 0.76 Bitcoin
  • HSI-USCBP Administrative Forfeiture of 0.22 Bitcoin
  • HSI-USCBP Administrative Forfeiture of 5.07545536 Bitcoin and 3.98147685 Bitcoin
  • HSI-USCBP Administrative Forfeiture of 6.95 Bitcoin
  • DEA Administrative Forfeiture of 27.152318 Bitcoin
  • HSI-USCBP Administrative Forfeiture of 6.9 Bitcoin

However, this is not the first time The US Marshals Service is auctioning off confiscated cryptocurrency from multiple federal criminal, civil as well as administrative cases. Only a few months ago, The US Marshals Service auctioned off a rather hefty amount of Bitcoins, 2170 to be exact, for approximately $24 million.

The Bidding Procedure

A number of rules and regulations have been pre defined for the bidding process. Only registered people can make a bid which is supposed to be sealed. A total of 660 Bitcoins to be auctioned off are lined up into two distinct series. A Series A, which consists of 6 blocks of 100 Bitcoins and Series B containing 1 block of 60 Bitcoins. A deposit of $200,000.00 USD is to be made in order to participate in the auction. The bidders can not view any other bids being made and.once a bid is made it cannot will become immutable.

Series Bitcoins per Block Blocks Available Total Bitcoins Available in Series Required Deposit
A 100 6 600 $200,000
B 60 1 60 $200,000
Total 660

Registration and Eligibility

The upcoming auction is to be the 8th Auction of Bitcoin and to be eligible for making a bid the participant must first register with the USMS and then submit the required documents to receive confirmation from USMS allowing them to make a bid in the preannounced time period. A single registration form allows an individual to bid on multiple blocks from series A and B on same price, but in order to bid distinct amount for multiple blocks, they need to obtain multiple forms for bidding as well as pay additional deposit funds. Foreigners are also allowed to get themselves registered to make a bid however people listed on U.S. Treasury Department’s Office of Foreign Assets Control list of “Specially Designated Nationals” will not be allowed. Additionally, all deposit and purchase funds must be submitted in a U.S. bank. Following documents need to be submitted in order to register,

  • A pdf copy of the Bidder Registration Form signed by hand
  • The bidder must also submit a copy of a Government-issued photo identification or that of a person making bids in place of another
  •  A Deposit must be made in US Dollars via Electronic Funds Transfer (EFT) sent from a US bank
  • A copy of the EFT transmittal receipt must be submitted as well

Announcement of Winners

All the people willing to participate in the auction will be notified by 1st November about their eligibility. The ones who are permitted will make their bids on November 5th, in an Online auction period from
8:00 AM EST to 2:00 PM EST and a winner will be subsequently notified by 5:00 PM EST. The winner is then supposed to initiate a wire to the USMS by 2:00 PM EST in order to claim the prize. In case, the winner fails to wire the amount in the required period, their deposit will be confiscated and the new winner will be notified. The Failed bidders however, will receive whatever deposit they made after the Bitcoin transactions close, within 5 business days.

Hassaan Malik

Co-founder of BlockPublisher, Hassaan is a technologist at heart with a keen interest in blockchain, cryptos and traditional financial markets. Email: hassaan@blockpublisher.com, hassaanmalek@gmail.com

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