The US Marshals Service is appealing for help disposing of seized or forfeited cryptocurrency. The government body is looking for firms to provide feedback on appropriate methods to store, liquidate, or potentially return Bitcoin and other cryptos involved with financial crimes.
A request posted on FedBizOpps details a potential position with the US Marshals for the respondent most suited for the role. Duties will include secure custody services for a range of digital assets, as well as the ability to auction those seized by the service.
Understandably, the US Marshals service is a bit clearer with its security requirements. Digital wallets used must be secure against “theft, human error, system failures, and acts of God.”
The US Marshals eventual contractor must also also have the ability to exchange crypto for physical cash. This might involve its trade for more recognised virtual currencies or disposal by way of sealed-bid auction. Additionally, the request notes that return of digital assets to rightful owners will also be necessary from time to time.
Previously, such government auctions have been used by large buyers of Bitcoin to gain greater exposure to the asset class.
American venture capitalist and perma-Bitcoin bull Tim Draper picked up large quantities of Bitcoin during both the first and second of the Silk Road auctions of 2014. The billionaire managed to secure over 29,000 BTC the first time around and a further 2,000 in the subsequent auction. The venture capitalist recently revealed that he paid $14 over the then asking price for each coin in the first lot.
There was reasonable interest in the first of the two selloffs, with 45 participants submitting bids. However, this waned considerably by the second auction and a fifth of that number took part.
Several subsequent sales have been held by the US Marshals service. The Bitcoins sold were seized based on their involvement in a variety of different crimes.
If the US Marshals services finds the right firm to help it dispose of its confiscated Bitcoin, such auctions would likely be held more regularly and could become an efficient way for big buyers to get exposure to Bitcoin and other crypto coins.