US Bitcoin Auction Draws Big Name Bidders

When the FBI and US government announced that it would be auctioning off the bitcoins salvaged from last year’s infamous Silk Road seizure, it piqued many people’s interests, namely because of the value – a whopping $17.4 million. So much so that Wall Street and Silicon Valley is getting in on the bidding.


Photo: Atana / Flickr

With registration closing this past Monday, Pantera Capital Management, the SF hedge fund, and Second Market Inc, a New York brokerage, have thrown their hats into the pile for the auction, which will commence on June 27.

Cryptocurrency enthusiasts will likely find solace in the growing interest from big players again as bitcoin truly took a pounding in value after a series of hacks, bankruptcies and seizures from authorities.

The auction will sell off a total of 29,656 coins. At this time of writing one bitcoin is currently worth $566.35 or €416.25. The bitcoins will be broken up into blocks of 3,000 for the bidding so it’s unlikely that any one excited multi-millionaire will swoop in and snatch up all the currency.

Unlike traditional bitcoin transactions, which are anonymous, bidders here will have to verify their identity and place a deposit of $200,000 to take part in the bidding. This is likely to weed out any supposedly unscrupulous bidders. The US Marshals tell us that the winners will be revealed on June 30.