THIS SEALED BID AUCTION IS FOR A
PORTION OF THE BITCOINS CONTAINED IN WALLET FILES THAT RESIDED ON
CERTAIN COMPUTER HARDWARE BELONGING TO ROSS WILLIAM ULBRICHT, THAT WERE
SEIZED ON OR ABOUT OCTOBER 24, 2013 (“COMPUTER HARDWARE BITCOINS”).
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 50,000 bitcoins separated into two series: Series A (10 blocks of 2,000 bitcoins), and Series B (10 blocks of 3,000 bitcoins). You will not have the opportunity to view other bids. You will not have the opportunity to change your bid once submitted.
Phase I: Bidder Registration
Required Registration Items:
You must deliver the Required Registration Items by email
If the USMS determines that you are an eligible bidder, you will receive
communication of that fact from the USMS and will be provided with
additional information regarding how to place your bid by 5:00 P.M. EST
on Tuesday, March 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 auction.
Example 1: A bid 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) requires ONE registration form for Series A with a $100,000 deposit. Use ONE Bid Form to bid for ALL THREE Series A blocks.
Example 2: A bid 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), and two (2) blocks of Series B for the same per bitcoin price (e.g. $Y per bitcoin for 6,000 Series B bitcoins) requires ONE registration form for BOTH Series A and B with a $250,000 deposit ($100,000 for Series A plus $150,000 for Series B). Use ONE Bid Form to bid for Series A AND Series B blocks. Note that the per-bitcoin price for Series A does not need to match the Series B per-bitcoin price.
Example 3: Three (3) separate bids to purchase blocks of
Series A at different prices (e.g. $X per bitcoin for 2,000 bitcoins, $Y
per bitcoin for 2,000 bitcoins, and $Z per bitcoin for 2,000 bitcoins)
requires THREE separate registration forms (EACH selecting Series A),
and a $300,000 deposit ($100,000 for EACH registration). Use THREE Bid
Forms, ONE FOR EACH Series A block. Note that each registration also
permits a bidder to register for other Series (requiring additional
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, March 05, 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..
You must use the Bid Form that will be provided to eligible registered bidders only. You may not submit bids on Series for which you did not register.
Your bid must reflect the number of blocks (up to a maximum of 10 blocks) that you wish to purchase. 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 price).
The prevailing bids will be determined by the following criteria:
Phase III: Award and Sale Close
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.”
Yes, you will need to submit new registration documents in order to be eligible to participate in this auction. Your registration in prior auctions does not make you eligible to participate in this auction.
3) Can a foreign citizen participate in the auction?
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.
4) Can I form a syndicate of buyers?
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 that certification.
5) How much money do I need to make a bid?
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, March 09, 2015 by 2:00pm EST. Failure to initiate a wire deposit in the full amount of your bid will result in forfeiture of your deposit.
6) Is there a 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. There is no disclosed reserve price for this auction.
7) 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.
8) 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 funds transfers.
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: 1-800-304-3107.