Feds Auctioning Off Another Bundle of Silk Road Bitcoins

November 17, 2014 | Peter Yeh

In June, after busting the first iteration of darknet marketplace Silk Road, the U.S. Marshals Service auctioned off 30,000 bitcoins it seized from the site’s operator. On Monday, the USMS announced the sale of another 50,000 bitcoin. But potential investors should be wary, as last time these came to auction, the USMS accidentally released a list of the bidders, meant to be anonymous.

If you’re on the fence over whether or not to put in a serious bid, here are a few things to keep in mind: First, there are 10 blocks of 2,000 bitcoin, and 10 blocks of 3,000 bitcoin. You’ll need a deposit of $100k to place a bid on the 2,000 bitcoin, and one of $150k for the 3,000 bitcoin block. That’s a lot of dough.

If you have that kind of cash, then let notorious third-generation venture capitalist schmuck Tim Draper — the guy behind the Six Californias ballot and overseer of the unaccredited Draper University of Heroes — be a cautionary tale. Draper purchased the entire 30,000 Bitcoins from the first auction for a value that he hasn’t disclosed, but is suspected to be above the price it’s trading now, $385 US. He still has faith his bitcoins will be worth over $10k each, but if he paid close to market price for his bitcoin at the time, he would have lost $5 million.

Caveat emptor, as they say.

(Photo: BTC Keychain)