Will Large Cryptocurrency Whale Investors Purchase Seized Bitcoin at Auctions?
The US Marshals Service is currently appealing for help in regards to seized cryptocurrencies. The agency is requesting information related to how to store, liquidate and return Bitcoin (BTC) related to financial crimes.
What To Do With Seized Bitcoin?
In a recent request that was posted on FedBizOpps, there is a potential position with the US Marshals that aims at helping the agency to secure custody services for a wide range of digital assets.
There are criminals that tend to use virtual currencies in order to process transactions and reduce their chances of being captured by regulatory agencies. Nevertheless, institutions are able to capture some of these criminals and seize their digital assets.
The government body hopes to get information that would allow it to take a good decision regarding the virtual currencies they handle.
The request does not seem to be very specific about what it needs and what it wants from experts. It does not even say how many digital currencies individuals would have to deal with.
On the matter, the US Marshals wrote:
“The contractor shall remain capable of taking custody of all types and quantities of virtual currency without limitation, throughout the performance of this contract. This includes both coin and token types of currency.”
The contractor should also be able to exchange cryptocurrencies for cash in an easy way. That means that they will have to sell their digital assets through an exchange or disposal by way of sealed-bid auction. From time to time, the contract will have to give the virtual currencies back to their respective owners.
In the past, investors in the United States were able to gain a larger exposure to the crypto market buying digital assets during auctions. One of the investors that did so is Tim Draper. He was able to acquire a large amount of Bitcoin during the first and second Silk Road auctions in 2014. He apparently bought 29,000 BTC and 2,000 in another auction.