Support Needed in Disposing of the Seized Bitcoin (BTC) : The US Marshals Service
The government body- The US Marshals Service USMS posted a request on FedBizOpps early this month which is seeking help in disposing of the seized cryptocurrency- Bitcoin and other altcoins. It is looking for some suggestions from firms for what would be the best ways to store, liquidate, or maybe return the cryptocurrencies such Bitcoin along with other altcoins that were forfeited in crimes related to the financial sector.
Further, the post hints at the possibility of the role of the respondent with the US Marshals. The role will include secure custody services for a variety of digital assets. It will also include the role of an auction the fortified funds and assets by the service.
The USMS is expecting more BTC to be fortified in the new future-
The US Marshals Services had released a request for the digital assets firms that ask for the required information and data about the best suitable ways for storing, securing, as well as the best way to dispose of the seized cryptocurrencies and assets. This is done to make a well informed and an all-around decision on chalking out which company will suit it the best for seizing the digital currencies and assets in the coming times.
Although the request lacks specificity, as there is no clarity on the volume of the digital currency that USMS can expect for the selected firm to deal with. In the post the USMS said-
“The contractor shall remain capable of taking custody of all types and quantities of virtual currency without limitation, throughout the performance of this contract. This includes both coin and token types of currency.”
The USMS is looking for assistance in seeking out the best ways to store, dispose, of and to return the fortified cryptocurrency. The USMS is rooting strongly for security requirements obviously when it talks about the expectations from the digital wallets to be safeguarded against threats such as- “theft, human error, system failures, and acts of God.”
Another expectation from the future selected firm will be to have the ability to exchange crypto for physical cash. This raises the requirement of the exchange or the crypto firm to be already dealing with recognized virtual currencies. Another requirement is the ability to dispose of via the ‘sealed-bid auction.’ Also according to reports obtained from newsbtc.com, the ‘request notes that the return of digital assets to rightful owners’ will also be expected out of that chosen firm. The interested firms for this role should reply before March 19.
The anticipated response from the firms-
Initially, such government-organized auctions used to take place to attract great exposure by the large buyers. For instance during Silk Road auctions back in 2014, Tim Draper the American venture capitalist and perma-Bitcoin bull took large quantities of Bitcoin in the first and the second auction securing 29,000 BTC and 2,000 BTC respectively. He paid 14 U.S. Dollars per BTC in the first lot.
The first auction attracted forty-five bids from the participants. The first auction also gained reasonable participation, but after the second one, the participation dropped off considerably resulting in only nine bids later on. The US Marshal Service has organized several sales. The BTC that it has sold were fortified in various financial crimes.
In case US Marshal Service gets a suitable firm to help it with disposing of the seized BTC and other altcoins, then auctions such as these will take place more often. At the same time, getting such auctions to be more regular would mean to attract big buyers to have business in BTC and other popular altcoins. It will be interesting to watch which firm bags this opportunity and what future opportunities open up with these attempts.