Bitcoins Seized From Silk Road to Be Auctioned

The U.S. government will start selling one of the largest caches of bitcoins, seized last year from the illicit Silk Road marketplace, triggering a decline in the virtual currency’s price.

A partial auction for 29,656 bitcoins will be held this month, the U.S. Marshals Service said in a statement yesterday. A total of about 144,341 bitcoins, worth about $86 million at current prices, was transferred to the agency from the FBI, the authorities said.

The hoard for sale represents part of the bitcoins seized in October when Silk Road’s operator, Ross William Ulbricht, was arrested and charged with conspiracy to commit computer hacking and conspiracy to launder money.

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