Lawyers Planet | U.S. Marshals Service to Auction $50 M in Bitcoins
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U.S. Marshals Service to Auction $50 M in Bitcoins

U.S. Marshals Service to Auction $50 M in Bitcoins

Last month, the chairman of the United States Securities and Exchange Commission prompted care on purchasing cryptocurrencies. This month, another branch of the federal government wishes to offer $50 million worth of it. The United States Marshals Service revealed Thursday that it prepared to auction off 3,813 bitcoins on Jan. 22, each which are valued at about $14,000,McClatchy Newspapers reports It’s the 6th such auction for the Marshals Service, which got bitcoins through criminal, civil and administrative loss. At the last auction, bitcoins were valued at simply $585 each. Caleb Watney of the libertarian think tank R Street Institute stated it may appear “a little hypocritical” on the federal government’s part to caution individuals versus purchasing the cryptocurrency while auctioning them off, however “it does not make good sense for police to simply rest on this.”

Why auction off the bitcoins instead of trade them in for their existing worth? Marshals Service Lynzey Donahue stated the auctions are performed on court orders in specific cases. The cases resulting in the revealed auction include charges of dispersing illegal drugs and handling massive dark web markets such as Silk Roadway, to name a few. The FBI shutdown of Silk Roadway in 2013 led to the very first bitcoin auction by the Marshals Service in June 2014, along with a number of subsequent auctions, an offloading of more than 100,000 bitcoins. Steven Kessler, a property loss lawyer in New york city, stated bitcoin auctions can end up being another method of making things difficult for the offender: “Let’s state I’m an accused with a $1 million loan judgment, and I have a Lamborghini. It deserves about $500,000, they offer it for $50,000, which approaches exactly what I need to spend for my loan judgment. The federal government has no reward to obtain an excellent worth in this auction, since they get $1 million in either case. They do not care.”

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