Bitcoin News

Seized Bitcoins soon to be disposed by the oldest law enforcement agency in the U.S

The oldest law enforcement agency in the United States, U.S Marshals Service, is calling on cryptocurrency firms to help in disposing seized Bitcoins.

The law enforcement agency is looking for cryptocurrency firms that have a secure way to store the seized Bitcoins and also firms that are capable of facilitating a refund of the Bitcoins or other cryptocurrencies to their owners.

This will lead to the first U.S Marshals’ Bitcoin and cryptocurrency disposal event this year. Last year, the law enforcement agency auctioned Bitcoin worth more than 80 million U.S dollars. However, in its current request for help in disposing and storing seized Bitcoins, the law enforcement agency did not quote the amount it is seeking to be disposed.

In an announcement posted on FedBizOpps, titled ‘Cryptocurrency Management and Disposal Services’ the U.S Marshals Service which falls under the United States Department of Justice, issued a Request for Information (RFI) where it is urging cryptocurrency companies to furnish the agency with how best to store and maybe dispose seized Bitcoins and other cryptocurrencies.

The announcement noted that:

Once all submissions have been received and reviewed, the Government anticipates posting a Request for Proposal (RFP).

Those who may be interested in working with the U.S Marshals Service must be able to convert the seized Bitcoin to fiat which can be conducted through an auction using sealed bids. The RFI expires on March 19 this year.

During last year’s auction of seized Bitcoins, the law enforcement agency required bidders to deposit $200K which would be returned to non-winning bidders. For registration purposes, the bidders had to submit a manually signed copy of the registration form, a government-issued ID, and a copy of the EFT receipt.

In the past, sealed-bid auctions of seized Bitcoins manifested a chance for Bitcoin whales to pile up their Bitcoin reserves. For example, in 2014, during the auction of the Silk Road proceeds, Tim Draper, a venture capitalist, increased his Bitcoin reserves by over 30,000 Bitcoins.

After the completion of the RFI phase, do you think Bitcoin whales will use the seized Bitcoins to increase their reserves?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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