US Marshals Service to Auction Approximately 660 Bitcoins in Forfeited Crypto Assets Bid
Over the years, through multiple lawsuits and arrests, the United States has confiscated plenty of Bitcoin. However, rather than allowing it to simply reside in an unused account somewhere, a press release from the US Marshall has provided an opportunity to register and pay for the Bitcoin.
Before registering, which requires a $200,000 deposit, the user must qualify for participation under the current regulatory laws. Those requirements include:
- The bidder must not be on the list of “Specially Designated Nationals,” regardless of nationality.
- The deposit must be from a U.S.-based bank.
The sealed bid is going to be sectioned off into two series – a Series A round with six blocks of 100 Bitcoins, and a Series B round with one block of approximately 60 Bitcoins. In order to register, there are four items needed – a manually-signed PDF version of the registration form, an image of a government-issued ID, the deposit, and a copy of their EFT transmission. The items will need to be send to [email protected] This registration was part of the first phase of the sale, which was open from October 22nd to October 31st.
Right now, Phase II is going on, and it started at November 5, 2018, from 8:00 AM EST to 2:00 PM EST. The only ones that can participate are individuals that have already acquired “an official Bid Form from the USMS.”
Phase III is the end of the sale. After all of the bids are collected, the USMS has about three hours to examine all of the bids to find the highest one. By 5:00pm EST on Monday the 5th, the winning bidder will be notified via email with the instructions for claiming it. The winning bidder has until 2:00pm EST on November 6th to make the wire transfer of their funds to purchase their Bitcoin. The individuals that did not win the bid will be informed by 10:00am EST on November 6th, and they can expect their deposits to be refunded within five business days.
Throughout the bidding process, participants are only able to view their own bids. The winning bid will be based on the highest value. If the highest price is met by more than one bid, then the first bid submitted that reached that value will receive the funds. If the winner cannot cover the cost of winning the bid, the next-highest bidder will be the recipient, assuming that they fulfill their requirements. According to the official press release, “Bids are considered open until the USMS has declared that the bid is not a winning bid.”
The US Marshall has been authorized for this sale, per 28 C.F.R. 0.111(i). This regulation specifically says,
“The Director of the United States Marshals Service shall direct and supervise all activities of the U.S. Marshals Service including maintenance of custody, management control, and disposal of property and money seized or forfeited pursuant to any law enforced or administered by the Department of Justice, when the property is seized by the U.S. Marshals Service or delivered to the U.S. Marshals Service in accordance with regulations; and administer the Department of Justice Asset Forfeiture Fund.”