Winning bidders of US govt bitcoins auction not announced
01 July 2014
Investors and bitcoin enthusiasts, who had since Friday been eagerly awaiting the results of the auctions of bitcoins by US Marshals Service, are still at a loss to know the identity of the winners or the value of the winning bids, The New York Times reported.
The announcement of the auction last month came as part of the government's plan to sell down the massive bitcoin stockpile it seized last year when Manhattan US attorney Preet Bharara shut down covert e-commerce site Silk Road.
With the seizure, the federal government emerged as one the largest owners of bitcoin, with its total stake including the auctioned bitcoin, worth $89 million, up from $85 million at the time of announcement of auction, but down from its peak of $150 million.
The government's auction for the sale of 29,656 of its 144,336 stash, wound down on Friday according to plan. The US Marshals Service received 63 bids from 45 bidders for the bitcoin, according to Lynzey Donahue, a spokeswoman for the Marshals Service the report said.
A number of prominent bidders said they had no clue what was going on. Dan Morehead, who bid through Pantera Bitcoin, considered a front-runner said the US government auction created a tremendous amount of new demand for Bitcoin.
He added most of the people were new entrants to the Bitcoin market. He added none of the Pantera's bids were hit and he thought it went at quite a high price.
Barry Silbert, who runs a Bitcoin investment fund through his firm SecondMarket, tweeted that his syndicate, which received 186 bids from 42 bidders, had been outbid on all blocks.
The US Marshals Service, with FBI and federal prosecutors' help, arranged the online auction for 29,656 of the Bitcoins seized from Silk Road. The site was shut in October after accusations of facilitating the sale of illegal goods and services.
A 12-hour window on Friday was available to bidders who had to submit one sealed bid for the coins, which had been broken up into lots of 3,000.
Meanwhile, the US government had delayed plans to announce the winners of its auction to sell off $18 million worth of the cybercurrency, the New York Post said.
However, plans to announce the winners by the close of business hours on Monday stalled, and according to Donahue, the award process was going on.