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United States Marshals Service Auctions Over 4,000 Bitcoins

Yvette Mwendwa by Yvette Mwendwa - 05:03 AM Feb 22, 2020
United States Marshals Service Auctions Over 4,000 Bitcoins

The United States Marshals Service (USMS) closed on 4,041 Bitcoin auction worth over $40 million. As per the agency’s spokesman, the Bitcoin were auctioned to two winning bidders. The USMS put up the BTC for sale on February 18 on the auction block. On the block, the bitcoins were categorized into four lots: 2,500 BTC, 1,000 BTC, 500 BTC, and 40.54069820 BTC.

Moreover, according to the USMS spokesperson, the two bidders won in quantities of 50 Bitcoin and approximately 3991.6 Bitcoin respectively during the event. Additionally, he confirmed that the bitcoin transfers were completed.

In addition, as per the auction’s rules, eligible highest bidders were to remain the prevailing winners of the Bitcoins. However, if in any case there were several highest bidders, the first highest bid prevails and if the highest bidder defaults, then the next highest bidder is declared the winner.

In fact, the USMS has previously lost out on billions by auctioning seized Bitcoins too early. The key security company, Casa CEO Jameson Lopp, once monitored 185,230 Bitcoin that was seized by the USMS. Unfortunately, the Bitcoin was sold for a mere $151,440,000. At the current market price, they would sell at $1,794,587,888.90 meaning the USMS lost almost $1.6 billion.

Not the First Time USMS Has Auctioned Seized Bitcoin

Furthermore, this is not the first time the USMS has auctioned seized Bitcoin. Back in 2014, the Marshals Service sold close to 30,000 BTC; across four blocks to billionaire venture capitalist Timothy Cook Draper. In addition, the Marshals Service previously the USMS seized $200,000 worth of Bitcoin from a case two Alabama drug dealers, Tyler Lee Ward and Henry Long Nguyen.

The duo was sent to prison back in May 2019 for participating in a conspiracy to sell Alprazolam, running drug premises and money laundering, as per the Department of Justice.

About The Author
Yvette Mwendwa

Yvette MwendwaI'm a believer in decentralization. An enthusiastic author, web geek & writer with experience writing for tech, digital, and cryptocurrency blogs.

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