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U.S. Marshals Service


USMS Seal

FOR SALE
2,719.32669068 bitcoins


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 2,719.32669068 bitcoins in one block. The required deposit to participate in this auction is $100,000.00 USD.

These bitcoins were forfeited in various federal criminal, civil and administrative cases, including:

  • United States v. Carl Mark Force IV, Northern District of California (Case No. 15-0319)

  • United States v. Sean Roberson, District of New Jersey (Case No. 14-565);

  • United States v. Ross William Ulbricht, Southern District of New York (Case No. 13-06919)

  • Department of Justice, Bureau of Alcohol, Tobacco, Firearms and Explosives, Case No. 776075-14-0028

  • United States v. 178.95842915 Bitcoins stored in MultiBit wallet XXXX4XDAd, Eastern District of Washington (Case No. 16-07009)

  • Department of Treasury, Internal Revenue Service, Case No. 2015 9400 500008 01 001

  • United States v. Approximately $200,979.15 Seized from Tradehill, Inc., held in the name of Megan Thompson, et. al. Eastern District of California, Case No. 14-02950

  • United States v. $309,305.24 in U.S. Currency, etc., District of Maryland, Case No. 15-03474

  • Department of Homeland Security, United States Customs and Border Protection, Case Nos. 2015330700002501, 2015330700002701, 2014330700023701, and 2014330700027201

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
Opens: 8:00 AM EDT, Monday, August 8, 2016
Deadline: Noon EDT, Thursday, August 18, 2016

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 manually signed pdf copy of the Bidder Registration Form

  • 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. The USMS will notify all bidders about their eligibility to participate in the auction by email no later than 5:00 PM EDT on Thursday, August 18, 2016. If the USMS determines that you are not an eligible bidder, the deposit funds will be returned, and you will not be eligible to participate in the online auction.

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 place one bid on all bitcoins at the same per bitcoin price. The following example is provided for your convenience:

Example: Bidder wants to place a bid to purchase all 2,719.32669068 bitcoins for the same per-bitcoin price (e.g. $X per bitcoin). Bidder should submit ONE registration form with a $100,000 deposit, and will use ONE Bid Form to bid on all bitcoins.


Phase II: Online Auction Period
Date: Monday, August 22, 2016, from 8:00 AM EDT to 2:00 PM EDT

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 AM EDT until 2:00 PM EDT on Monday, August 22, 2016. Bids received before or after the online auction period will not be considered. Bids that do not conform to the instructions will not be considered.

The prevailing bids will be determined by the following criteria:

1. The eligible bidder who offers the highest price will be the prevailing bidder;
2. If there are multiple bids at the highest price, the first bid received will prevail; and
3. 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

No later than 5:00 P.M. EDT on Monday, August 22, 2016, the USMS will notify the winning bidder that their bid has been selected. The winning bidder 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. EDT, on Tuesday, August 23, 2016. It is the responsibility of the winning bidder 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. The winning bidder 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 PM EDT on Tuesday, August 23, 2016. 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 TUESDAY, AUGUST 23, 2016, AT 2:00 PM EDT 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 a single block to a single bitcoin address.

  • 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 Marshals Service.

ADDITIONAL INFORMATION

  • 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 in violation of USMS Policy 13.7, Persons Prohibited from Purchasing Forfeited Property

FREQUENTLY ASKED QUESTIONS

  • How did the USMS get the authority to sell these bitcoins?
    The USMS was granted authority to manage and sell these bitcoins through court orders entered in the respective cases listed above.

  • 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.

  • 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 defendants or defendant entities. 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.

  • 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 Wednesday, August 24, 2016, at 2:00 PM EDT. Failure to initiate a wire deposit in the full amount of your bid, less the initial deposit, will result in forfeiture of your deposit.

  • Is there a reserve price for this auction?
    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.

  • 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, except for the number of registered bidders and the number of bids received.

  • 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. 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.

August 2016
Mon Tue Wed Thurs Fri
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Phase I
Bidder registration opens at 8:00am EDT

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Phase I
Bidder registration and deposit due by
Noon EDT. USMS notifies parties about eligibility to participate in the online auction by 5:00pm EDT.
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Phase II
Online auction period from 8:00am EDT to 2:00pm EDT.

Phase III
Winning bidder notified by 5:00pm EDT

Winning bidder must initiate wire to the USMS by 2:00pm EDT
     

 

 

 

Asset Forfeiture

usmarshals.gov is an official site of the U.S. Federal Government, U.S. Department of Justice