Silk Road Fall Out: Third Bitcoin Auction Scheduled

The federal government has announced it will be holding its third auction of bitcoins seized from the Silk Road marketplace on March 5 from 8 a.m. to 2 p.m. This auction is the third of its kind and will sell approximately 50,000 bitcoin, worth $12 million. Winning bidders will be notified on March 6 via email statement from the U.S. Marshals Service. The previous winners of the two other bitcoin auctions were Tim Draper and SecondMarket Inc.

The bitcoin will be auctioned off in 20 separate blocks comprised of 10 blocks of 2,000 bitcoin and 10 blocks of 3,000.

While this is a big opportunity for the bitcoin industry, analysts suggests the third auction may receive less public interest than the second or the third due to the increased regulatory scrutiny as well as recent security breaches and closures of bitcoin businesses.

In an email to a Bloomberg representative, Gil Luria, analyst at Wedbush Securities, says,

[The auction] is likely to attract mostly large existing investors in bitcoin including the established bitcoin companies… I would not expect the level of attention and participation from the first auction given the way the second auction played out.”

Anyone associated with Ulbricht or Silk Road will not be permitted to participate.

 

Read more here- “U.S. Announces Third Bitcoin Auction,” (Sydney Ember, The New York Times)

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Olivia is a graduate of Villanova University where she studied Economics and History, minoring in Gender and Women's Studies. She also has experience working with federal legislatures on health care policy, women's issues, and Internet safety.

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