THIS NOTICE DOES NOT CONSTITUTE AN OFFER
TO SELL BUT INVITES INTERESTED PARTIES TO SUBMIT A BID FOR PURCHASE.
THE FOLLOWING INFORMATION IS BEING PROVIDED WITHOUT RECOURSE TO THE
UNITED STATES OF AMERICA AND THE UNITED STATES MARSHALS SERVICE.
CHECK BACK FREQUENTLY FOR UPDATES
PLEASE READ ALL INSTRUCTIONS CAREFULLY.
FAILURE TO COMPLY WITH ANY OF THE FOLLOWING INSTRUCTIONS WILL
RESULT IN DISQUALIFICATION FROM THIS SEALED BID AUCTION.
This sealed bid auction is for 44,341.55308401 bitcoins separated
into two (2) series.
Bitcoins per Block
Bitcoins Available in Series
These bitcoins were held in wallet files that
resided on certain computer hardware belonging to Ross William Ulbricht,
that were seized on or about October 24, 2013. On January 27, 2014, the
United States District Court for the Southern District of New York
entered a Stipulation and Order for Interlocutory Sale of Bitcoins
wherein the United States and Ross William Ulbricht agreed that the
United States may sell any portion or all of these bitcoins on a date or
dates in a manner to be determined by the government.
You will not have the opportunity to view other
bids. You will not have the opportunity to change your bid once
Phase I: Bidder Registration
Opens: 9:00am EDT on Monday, October 19, 2015
Deadline: Noon EST on Monday, November 02, 2015
All interested parties must first register with the USMS. You are
not eligible to submit a bid or otherwise participate in this auction
unless you have submitted all required documents and have received
confirmation from the USMS that you are an eligible bidder. Any
registration documents received after the deadline will not be
considered. Registration documents that were submitted in prior USMS
auctions are not valid for this auction – you must submit new
registration documents to be considered for this auction.
Required Registration Items:
- A copy of a Government-issued photo ID for the
Bidder (or Control Person(s) of Bidder)
- Deposit in US Dollars sent by wire transfer
originating from a bank located within the United States
- A copy of the wire transmittal receipt
You must deliver the Required Registration Items
by email to
USMSBitcoins@usdoj.gov. If the USMS determines that you are an
eligible bidder, you will receive additional information regarding how
to place your bid by 5:00 P.M. EST on Tuesday, November 3, 2015. If the
USMS determines that you are not an eligible bidder, you will receive
communication of that fact from the USMS, the deposit funds will be
returned, and you will not be eligible to participate in the online
The deposit of the winning bidder will be retained by USMS and credited
towards the purchase price. If the winning bidder fails to close on the
transaction through no fault of the USMS, the winning bidder will
irrevocably forfeit his/her/its deposit to the USMS. The deposit of any
bidder whose bid is not selected as a winning bid will be returned by
ACH transfer to the original account from which the deposit was
received. We will begin processing return of deposits immediately
following the close of the bitcoin transaction(s). We hope to process
all returns within five (5) business days, but high participation may
result in slightly longer return times.
Bidder Registration Form:
Bidders must register to participate in this auction. One registration
form allows you to bid on multiple blocks from either Series A or Series
B at the same per bitcoin price, but does not allow you submit multiple
bids at varying per-bitcoin prices. If you wish to have the ability to
bid multiple prices on multiple blocks, you will need to submit
additional registration forms and additional deposit funds. The
following examples are provided for your convenience:
Example 1: Bidder wants to purchase
three (3) blocks of Series A for the same per-bitcoin price (e.g. $X per
bitcoin for 6,000 Series A bitcoins). Bidder should submit ONE
registration form with a $100,000 deposit, and will use ONE Bid Form to
bid on all three Series A blocks.
Example 2: Bidder wants to purchase three (3) blocks of Series
A and one (1) block of Series B for the same per-bitcoin price (e.g. $X
per bitcoin for 6,000 Series A bitcoins, and $X per bitcoin for
2,341.55308401 Series B bitcoins). Bidder should submit ONE registration
form with a $100,000 deposit, and will use ONE Bid Form to bid on all
four blocks at the same per-bitcoin price (for both Series A and Series
Example 3: Bidder wants to purchase two (2) blocks of Series A
and one (1) block of Series B at different prices (e.g. $X per bitcoin
for 2,000 bitcoins from Series A, $Y per bitcoin for 2,000 bitcoins from
Series A, and $Z per bitcoin for 2,341.55308401 bitcoins from Series B).
Bidder should submit THREE separate registration forms, and a total
deposit of $300,000 (or $100,000 for each registration), and will use
THREE Bid Forms, one for each separate per-bitcoin bid price. Note that
each registration allows the bidder to submit the same per-bitcoin price
bid for both Series A and Series B.
Phase II: Online Auction Period
Date: Thursday, November 05, 2015, from 8:00am EST to 2:00pm EST
Only eligible registered bidders who have received an official Bid Form
from the USMS may participate in the online auction.
In order for your bid to be considered by the
USMS, you must send a signed pdf copy of the Bid Form within the online
auction period window, which extends from 8:00 A.M. EST until 2:00 P.M.
EST on Thursday, November 5, 2015. Bids received before or after the
online auction period will not be considered. Bids that do not conform
to the following instructions will not be considered.
A bid on more than one block from a series means
that the bidder will accept any number of blocks up to the number of
blocks for which he/she/it bid (e.g. a bid to purchase 5 blocks means
that bidder will accept 1, 2, 3, 4 or 5 blocks at the per block offer
The prevailing bids will be determined by the following criteria:
- The eligible bidder who offers the highest price will be the
- If there are multiple bids at the highest
price, the first bid received will prevail;
- If fewer than all of the blocks in a series
are sold to the highest bidder, the remaining blocks will be sold to
the successive highest bidders until all blocks are sold; and
- If a winning bidder defaults, the next
highest bidder will be declared the winning bidder.
Bids are considered open until the USMS has
declared that the bid is not a winning bid.
Phase III: Award and Sale Close
On Friday, November 6, 2015, by 5:00 P.M. EST, the USMS will notify the
winning bidder/bidders that their bid/bids has/have been selected.
Winning bidder(s) must send the purchase price funds (less the deposit
amount) by a wire transfer originating from a bank located within the
United States and provide a wire transmittal receipt to the USMS by 2:00
P.M. EST, on Monday, November 9, 2015. It is the responsibility of the
winning bidder(s) to understand their bank’s deadline for initiating
wire transfers in order to ensure that the domestic wire transfer is
initiated and a wire transmittal receipt provided to the USMS by the
deadline. Failure to provide the USMS with a copy of the wire
transmittal receipt by the deadline will result in disqualification,
forfeiture of the deposit, and award to another bidder.
No bitcoin transfer will be made until the USMS has confirmed receipt of
all purchase funds. The bitcoin transfer process will begin immediately
following receipt of purchase funds, and may take several days depending
on the number of winning bidders. The winning bidder(s) will be given
private instructions related to the transferring of the bitcoins.
TERMS OF SALE
- Payment. The bid must be an
all cash offer. Bids that are contingent on financing terms of any
kind will not be considered. All bids must be made in U.S. dollars.
- Receipt of Funds. The
winning bidder should be prepared to wire purchase funds to the USMS
by 2:00 P.M. EST on Monday, November 9, 2015. If the winning bidder
does not provide the USMS with a copy of the wire transmittal
receipt by this date, the bidder will be disqualified and another
winning bidder will be selected. FAILURE TO INITIATE A WIRE TRANSFER
AND PROVIDE THE USMS WITH A COPY OF THE WIRE TRANSMITTAL RECEIPT BY
MONDAY, NOVEMBER 9, 2015, AT 2:00 P.M. EST WILL RESULT IN FORFEITURE
OF THE BIDDER’S DEPOSIT. The winning bidder is responsible for any
wire transfer fees associated with his or her payment.
- Bitcoin Transfer. The USMS
will not transfer any bitcoins until it has confirmed receipt of
purchase funds from the buyer. The USMS will not transfer bitcoins
to an obscene public address, a public address apparently in a
country restricted by the Office of Foreign Assets Control (OFAC), a
public address apparently associated with terrorism, other criminal
activities, or otherwise hostile to the United States.
- Transfer Fees. Any transfer
fees associated with the transfer of the bitcoins will be paid by
the buyer. The buyer will be given an opportunity to select the
amount of fees charged in the transfer.
- Block Transactions. The
USMS will only sell and transfer the bitcoins in blocks as described
- Bidder Qualification. The
USMS reserves the right to reject any bid for any reason whatsoever.
The USMS reserves the right to sell all, some or none of the
bitcoins at auction.
- Bill of Sale. The winning
bidder will receive a signed Bill of Sale from the United States
- The USMS does not make any representations
or warranties regarding Bitcoin.
- Questions related to the auction process
should be directed to
USMSBitcoins@usdoj.gov. The USMS in its discretion will respond
directly to email communications or will post additional items to
the “Frequently Asked Questions” section below. The USMS will not
respond to any telephone inquiries from the general public. The USMS
will not answer any questions regarding (a) the associated criminal
or civil cases that resulted in the seizure of the bitcoins being
auctioned, or (b) Bitcoin characteristics, uses or value.
- The USMS will not sell to any person who is
acting on behalf of or in concert with the Silk Road and/or Ross
William Ulbricht, and bidders will be required to so certify.
FREQUENTLY ASKED QUESTIONS
1) How did the USMS get the authority to
sell these bitcoins?
On January 27, 2014, the United States District
Court for the District of New York entered a Stipulation and Order for
Interlocutory Sale of Bitcoins. In this order, both the United States
and Ross William Ulbricht agreed that “the United States, in its sole
discretion, may sell any portion or all of these bitcoins, on a date or
dates and in a manner to be determined by the Government.”
2) Can a foreign citizen participate in
Yes. However, bids will not be accepted from any
person or entity that appears on the U.S. Treasury Department’s Office
of Foreign Assets Control list of “Specially Designated Nationals.”
All deposit and purchase funds must be received
from a U.S. bank. No exceptions.
3) Can I form a syndicate of buyers to
participate in the auction?
Yes. The person or entity that registers to bid
on this auction must satisfy all registration requirements, including
certifying that the bidder is not acting in concert with the defendant
or defendant entity. This certification extends and applies to all
members of a syndicate. The primary bidder should perform whatever due
diligence the bidder feels is necessary in order to comfortably make
4) How much money do I need to make a
You are responsible for ensuring that you have
enough available funds to cover your bid. If you are selected as a
winning bidder, you must initiate a wire transfer and provide the USMS
with a copy of the wire transmittal receipt by Monday, November 9, 2015,
at 2:00 pm EST. Failure to initiate a wire deposit in the full amount of
your bid will result in forfeiture of your deposit.
5) Is there a reserve price for this
There is no disclosed reserve price for this
auction. The United States Marshals Service reserves the right to sell
some, all or none of the bitcoins for any reason.
6) What information about the auction
process or results will the USMS release?
The USMS will contact the winning and losing
bidders directly. The USMS will not release any information to the
general public pertaining to the auction process or results.
7) How will my deposit be returned if I
am not a winning bidder?
The USMS will send funds by Automated Clearing
House (ACH) transfer. Please ensure that the financial institution from
which your deposit was sent will accept an incoming ACH transfer before
you register for the auction. In exceptional circumstances, judged on a
case by case basis, the USMS will agree to send funds by wire transfer.
Please know and understand the difference between these two types of
Your refund will be processed following the close
of the auction. We will endeavor to initiate all refunds within five (5)
business days following transfer of bitcoins to the winning bidder(s).
Fund transfers are not immediate, as they are routed through the
Department of Treasury (see paragraph below). If you provide incorrect
information, it may take a week or longer to confirm that a transaction
has been rejected before making another attempt. If you are sending
funds from a foreign country using an intermediary U.S. bank, please be
aware that receipt of refunds may take longer to process and confirm.
Due to the foregoing factors, we cannot guarantee a date for you to
receive your refund.
The Debt Collection Improvement Act of 1996, 31
United States Code § 3716, requires the Department of the Treasury and
other disbursing officials to offset Federal payments to collect
delinquent debts owed to the United States, or delinquent debts owed to
states, including past-due child support enforced by states. If an
offset is made during an ACH transfer, the claimant will receive a
notification from the Department of the Treasury at the address provided
by the claimant. If you believe that your payment may be subject to an
offset, you may contact the Treasury Department at the following number:
Bidder registration opens
Bidder registration and deposit due by Noon EST
USMS notifies parties about eligibility to participate in the
online auction by 5:00 EST
Online auction period from
8:00 AM EST to 2:00 PM EST
Winning bidder notified by 5:00 PM EST
Winning bidder must initiate wire to the USMS by 2:00 PM EST