According to the US Marshals Service (USMS), there will be an auction of 2,170 Bitcoins that were seized in the course of different federal criminal, civil and administrative cases. These Bitcoins will be auctioned off on March 19th, starting at 8am Eastern time. The USMS announced the auction via press release earlier this week, with all interested bidders having to fill out an application and make a $200,000 USD deposit via wire transfer by March 14th to be eligible to participate in the bidding process.
What are bitcoins & Who can participate ?
Bitcoin is a digital currency that can be transferred through a computer or smartphone without an intermediate financial institution. Once you transfer your money to Bitcoin, it stays there until you decide to spend it on goods or services. It’s traded on exchanges throughout the world, and because of its relatively anonymous nature and lack of regulation by central authorities, it has become popular with people who want to get around government currency controls.
In order to participate in USMS’s auction you need to be pre-approved by USMS and you have to have a bidder’s registration accepted prior to bidding. In order to obtain a bidder’s registration a potential bidder needs submit several pieces of information about themselves such as their name, address, telephone number and financial information. An approved bidder will receive confirmation via e-mail. Be advised that you can only register once per Bitcoin wallet.
The auction itself is open to all bidders except those who live in (or have an entity located in) Cuba, Iran, North Korea, Sudan or Syria due to U.S.
In order to take part in the auction you need to register with one of three qualified bitcoin exchanges in order to deposit funds. You also need to create an account on each exchange as a new user and go through anti-money laundering verification. Finally, you’ll need about two days before your account is activated on each site and able to submit bids.
How do I participate?
The auction will take place on March 19th. To register as a bidder, you have to set up an account and make a deposit of $200,000. However, if you can’t afford that much money or are unwilling to participate, there is no way to avoid it. The US Marshals say that their main goal with these auctions is to reach as many bidders as possible regardless of their financial situation.
About this specific bitcoin Auction
The bitcoins will be auctioned in 10 blocks: two of 50, one of 20 and eight of 3.5 bitcoins. The bidding period will start on March 19th at 6 am EST and finish 24 hours later on March 20th. The agency has opened a special website where interested parties can check information about US Marshals bitcoin auctions, such as schedule and regulations. Bidders must pre-register in order to participate in the auction. They are also required to deposit $200,000 via wire transfer from a bank located within the United States prior to being able to participate in an auction. The amount equals 30% of what bidders are required to bid during an online auction. This process is meant to ensure that potential participants have adequate means with which they can cover their bids if they win any part of the available supply.