$16 Million of Confiscated Bitcoins Up for Auction

Close to $16 million worth of bitcoin will be auctioned off in Sydney next month after they were confiscated in relation to a crime last year. Bitcoin is a digital currency that is favoured among online crime syndicates, particularly around the sale of drugs.

Check out our bitcoin explainer here.

One bitcoin is currently worth $654, but over the last two years it’s value has stretched anywhere from $1,200 to $200 per coin.

The first of it’s kind in Australia and only the second globally, the auction will be facilitated by Ernst & Young, with bidding registrations opening on the 1st of June and closing on the 7th of June.

The bitcoins belonged to Ross Ulbricht, the man behind the deep web drug marketplace Silk Road. After his arrest and conviction, The US Marshals Service conducted the sale of 144,000 bitcoins, worth about $US122 million at the time.

Keen on some cryptocurrency? You’ll have to have a heap of cash, with the total of 24,518 bitcoins being split into 11 lots of 2,000 and one lot of about 2,518. Each bundle is worth around $1,308,000. Ooft.

So who would spend this much money on currency? Ernst & Young are expecting interest from digital asset investment managers, digital currency exchanges, investment banks and hedge funds, mostly from the US and Europe.

Adam Nikitins, transaction partner at Ernst & Young says the auction will probably be pretty wild.

“This current wallet is an extremely large holding of bitcoin,” he said

“This will be a pretty hotly-contested auction, more competitive than previous auctions because the price volatility has reduced.”

With a rather intense registration process that requires a hefty up-front deposit, Mr Nikitins says only serious bidders should apply. In other words, don’t bother unless you got MAD STACKS.

“Eligibility mostly relies on the ability to transact.”

The Dark Web – It’s fucking terrifying