US marshals to auction seized bitcoins

Written By Unknown on Jumat, 13 Juni 2014 | 17.52

US authorities will auction off $US18 million in Bitcoins they seized from Silk Road. Source: AAP

THE US Marshals Service says it will auction about $US18 million in bitcoins seized last northern autumn from Silk Road, a website that was effectively the eBay of illegal drugs.

THE marshals said on Thursday that they will auction the virtual "coins", consisting of sets of numbers entered in an online public ledger, via the web on June 27.

Authorities say Silk Road generated more than $US1 billion ($A1.08 billion) in illicit business from January 2011 to October 2013, when alleged operator Ross William Ulbricht was arrested in a public library in San Francisco.Ulbricht has pleaded not guilty. The website took commissions in bitcoins, which are hard to track.The marshals are auctioning off 29,657 bitcoins in 10 blocks, which means buyers will need to pony up nearly $US1.8 million each.The Marshals Service is keeping another 144,342 bitcoins, worth about $US87 million at current rates, that were found on Ulbricht's computer. He's contesting their forfeiture.

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