Feds ready to auction off $25 million in Silk Road Bitcoin

In a press release on Thursday, the US Attorney’s office for the Southern District of New York announced the forfeiture of 29,655 bitcoins that were seized from a Silk Road server during a raid in October. At current exchange rates, that purse is worth about $25 million, up from $3.5 to 4 million when it was seized. The US Attorney’s office also announced that the Silk Road website will be forfeited along with the bitcoins.

A spokesperson for the US Attorney’s office told Forbes that the bitcoins will be auctioned off, although he could not say when the auction will take place. It will be the federal government’s first-ever auction of bitcoins, and as Forbes points out, there is no legally-certified US Bitcoin exchange, so converting the stash into cash first will likely not be an option.

Ross Ulbricht, who allegedly went by the name of Dread Pirate Roberts and who is suspected of being the mastermind behind the Silk Road, has been in custody since federal agents arrested him at the Glen Park branch of the San Francisco Public Library three months ago. That day, feds also seized a cache of 144,000 bitcoins that belonged to Ulbricht personally. While the government is seeking to auction off those bitcoins as well, Ulbricht is contesting the forfeiture in civil court.

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via Ars Technica http://ift.tt/1atBSsy

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