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U.S. Marshals Plan to Auction Off Bitcoin

September 20, 2018 Blog

Buying Bitcoin can be complicated, and those who decide to trade Bitcoins should consider getting advice from a Bitcoin attorney who can provide insight into the regulations and laws surrounding cryptocurrency markets.

There’s one unorthodox way that you could purchase Bitcoin in the near future: you could buy it at an auction that is being held by the U.S. Marshal Service. That’s because the U.S. Marshal has announced that it is planning to conduct an auction for around 600 Bitcoins some time in November of 2018. The 660 Bitcoins which are being auctioned off are worth approximately $4.3 million U.S. dollars although it is not clear exactly what the final price of the Bitcoin purchase will be at auction.

U.S. Marshal are Auctioning Off Bitcoin

U.S. Marshals are auctioning off hundreds of Bitcoins in a sealed auction because the Bitcoins were seized through asset forfeiture in many criminal cases and administrative civil cases over the past several years.

The Bitcoins were owned by many people who engaged in wrongful activities, such as money laundering, and who were convicted and sentenced to jail or who were determined under civil forfeiture rules to have funds obtained as a result of criminal misconduct. When Bitcoins are obtained as a result of unlawful activities or when Bitcoins are purchased with funds earned though illicit, unlawful acts, the U.S. government can seize the Bitcoins.

The U.S. government has seized many Bitcoins in recent years, which is why it now has 660 coins that can be auctioned off in a sealed auction.   There are going to be multiple series in the auction, including Series A that has six blocks made up of a total of 100 Bitcoins and Series A, which has one block that has 60 bitcoins.

Those who wish to participate in the auction will need to register with the U.S. Marshals Office. The U.S. Marshals Service is a part of the U.S. Department of Justice, and it is a federal law enforcement agency vested with enforcing actions taken by federal courts.

Those who have registered with the Marshals Service will be able to place a bid for Series A or Series B to try to buy the coins from the Marshal in the auction. Bidders cannot see other bids that have been submitted for the coins. Once they submit their bids, those who have already bid will not be allowed to modify their offers either.  Anyone who wishes to make a bid will need to provide government ID and will need to make a deposit of around $200,000 deposit, which is equivalent in value to approximately 30 Bitcoin.

Most people will not buy Bitcoin at an auction but will instead obtain cryptocurrency through more conventional channels. No matter how you buy Bitcoin, however, it is important that you understand the laws regulating the cryptocurrency market and that you know how to protect the investment that you make in your coins. A Bitcoin attorney can provide insight into Bitcoin regulations and can help you to make smart choices about your investments in cryptocurrencies. You should contact an attorney today to learn more.