BTC worth 37.5 million are expected to be auctioned online later this month, the federal agency claimed in a statement here on Monday. The United States Marshals Service or USMS plans to auction over 4000 seized Bitcoins (BTC) on February 18.
As per the official USMS website, preregistered bidders will only be eligible to place their bids. The registration process has already begun on Monday and will continue till February 12. By February 12, a $200,000 deposit must be made in order to take part in the bidding process. The deposit shall be returned to the non-winning bidders only if they promise to start the return of losing bid deposits in 5 business days after transferring the BTC to the winning bidder.
Meanwhile, the Justice Department agency will send a notification to the registrants regarding their eligibility to participate in the bidding process by February 13, 5 pm.
USMS is planning to auction approximately 4050.54 BTC forfeited in several civil, administrative, and federal criminal offenses.
As per the USMS website, the auctioning of the BTC will take place in four various batches that will be further divided into smaller blocks.
In the first batch classified as Series A, 2500 BTC is expected to be auctioned in five blocks of 500 BTC each. It will be followed by 1000 BTC in 10 blocks, 500 BTC in yet another 10 blocks, and finally 40.54 BTC in the last batch.
The bidders will be required to deposit several forms in case they are keen to bid different prices for different blocks, added USMS.
Auction has emerged as a favored method for the USA’s law agencies to dispose of the BTC acquired in several legal cases.
Earlier, venture capitalist Tim Draper had won approximately 29,656.5 Bitcoin during a USMS’ auction of assets forfeited from the Silk Road marketplace website. This time $17 million BTC will reportedly have a value of $275.4 million
In the year 2018, the UK and Ireland-based leading auction house Wilsons Auctions organized the first BTC auction.