The government agency requires a substantial deposit of $200,000 for those who wish to participate. Bidders will not be able to view other bids, nor will they be able to alter their bids after submission. The bitcoin for sale is a result of 31 different federal criminal, civil, and administrative cases.
This is the not the first bitcoin auction this year from the U.S. Marshals, founded in 1789, and the oldest federal law enforcement agency in the United States. The agency conducted two other auctions, one in January, which netted the U.S. government around $45 million, and another in March.
While many have maintained that the cryptocurrency space is dominated by criminals, others, including DEA agent Lilita Afante, believe that criminal activity associated with bitcoin has been reduced dramatically. This hasn’t prevented others – including famed economist Nouriel Roubini -from spreading misinformation, as he stated in a Senate hearing that only “criminals use crypto”.
Bitcoin auctions by the U.S. Marshals have historically provided an opportunity to savvy investors, as Tim Draper – one of the most respected venture capitalists in Silicon Valley – was able to purchase 30,000 BTC for 19 million – that is now worth hundreds of millions of dollars. The billionaire has stated that he would never sell his bitcoin for fiat currency again.