Credits: The Mediabulletin

The US mulling to sell 41K Bitcoin connected to Silk Road

The US government is planning to auction off 41,000 bitcoins that are connected to the infamous Silk Road marketplace. The auction will take place in the near future, and it is expected to be the largest sale of confiscated bitcoin by the US government to date.

Silk Road was an online marketplace that operated on the dark web from 2011 to 2013. It was known for its illegal activities, including the sale of drugs and other illicit goods and services. The website was shut down by the FBI in October 2013, and its founder, Ross Ulbricht, was arrested and sentenced to life in prison in 2015.

The 41,000 bitcoins that are up for auction were seized by the US government during the investigation into Silk Road. They have been held in a government wallet ever since, and this will be the first time they are sold.

Credits: CNA

The auction is being handled by the US Marshals Service, which is responsible for the management and sale of assets seized by federal law enforcement agencies. The bitcoins will be sold in blocks of 2,500, which is equivalent to approximately $100 million at current market prices.

The auction is open to registered bidders only, and the deadline for registration is in a few weeks. Bidders will have to put down a deposit of $200,000 to participate, and they will be required to pay in full within 24 hours if they win.

The sale of the bitcoins is expected to generate significant interest from investors, especially given the recent surge in the price of bitcoin. The cryptocurrency hit an all-time high of over $64,000 earlier this year before experiencing a sharp correction.

Credits: Cryptoslate

Some experts have raised concerns about the potential impact of the sale on the market price of bitcoin. However, others argue that the sale of confiscated bitcoins is unlikely to have a significant effect on the broader market, given the size and liquidity of the market.

The sale of confiscated bitcoins by the US government is not a new phenomenon. The government has auctioned off a number of large bitcoin holdings in the past, including 30,000 bitcoins seized from Silk Road in 2014 and 4,000 bitcoins seized from a dark web drug dealer in 2015.

Overall, the sale of the 41,000 bitcoins is a significant development in the ongoing saga of Silk Road and the government’s efforts to crack down on illegal activities on the dark web. It remains to be seen how much the bitcoins will fetch at auction and what impact their sale will have on the broader market for cryptocurrencies.