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Someone just bought $19M in bitcoins seized by the U.S. government (updated)

Image Credit: BTC Keychain/Flickr
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Update 9:25 a.m. ET: Venture capitalist Tim Draper is responsible for the purchase, according to Reuters.

A single mystery bidder just bought 29,656.5 bitcoins seized by the U.S. government from the Silk Road online black market, Wired reports.

When the U.S. Marshall invited bids for the 29,656.5 bitcoin-haul last month, the alternative currency took a hit on the news — falling from $634.38 to $568.87. The market has hardly budged (so far) on news of the sale today, according to bitcoin price metrics provided by Coinbase and Coindesk. The auction was scheduled to take place June 27.

Although the exact amount paid by the bidder is unclear, Wired and others estimate it at $19 million, which aligns with the current bitcoin-to-USD exchange rate.

As we reported last month, these coins do not specifically belong to Pirate Dread Roberts aka. Ross William Ulbricht, who the FBI arrested in October for owning and operating Silk Road. These are coins that existed on the Silk Road’s servers.


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6 comments
Charles Randall
Charles Randall

Paid for with all the money Draper saved buying cheap suits and $10 haircuts.

Jon Ohler
Jon Ohler

Gets drunk and buys dogecoin wakes up..omg genius.

Scott ONeal
Scott ONeal

Lmbo .. the Government don't like Bitcoin but they'll sell them without any problem!

Junior La
Junior La

That's when you know the government does bullshit at times. I wonder if they are going to try to unload any marijuana confiscations to public bidding once it's passed in the federal court of law.