75% of $20M Bitcoin Auction from Drug Busts

Nabbed in conjunction with various administrative, civil, and federal prosecutions, the United States Marshals are preparing to auction over 2,000 bitcoin. The official sale is open to all countries, pending requirements, and will commence March 19th, 8am to 2pm Eastern, for a period of six hours. If successful, it could mean over 50 million USD in bitcoin has been auctioned from the agency in two months.

More Bitcoin to be Auctioned by US Law Enforcement

Asset seizure is managed in the US by its Marshals Service, taking over from the Department of Justice during or after the adjudication of a case. The theory holds property derived from illegal activity should not be allowed to benefit criminals, wrongdoers ultimately, especially when there is a victim involved.

It becomes a lot touchier when what are termed ‘victimless crimes’ emerge, as in many drug cases, and property is claimed by the government even still. In those cases, law enforcement agencies have been able to profit off such auctions. In fact, US Marshals are said to manage close to two and half billion dollars worth of assets in this regard.

75% of $20Mil Bitcoin Auction from Drug Busts

And so it is with approximately 2,170 bitcoin set to be auctioned off this month. The coins were seized from a variety of sources: criminal, civil, administrative. To be eligible for the March 19th auction, “potential bidders must complete all registration requirements by noon EDT March 14,” a press release noted. “A $200,000 deposit is required to participate. Deposits will be returned to non-winning bidders.”

Registered bidders only will get a chance to make offers via email. Bitcoin will be served up in chunks or blocks: “two blocks of 500 bitcoins, 11 blocks of 100 bitcoins and one block of approximately 70 bitcoins,” for a total of 14 blocks. The winner will be contacted on the 19th. Right around $25 million is the expected haul, depending upon spot pricing, of course, and respective bids…

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