Frequently Asked Questions (Updated 06/19/14)
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 OR THE UNITED STATES MARSHALS SERVICE.
THIS AUCTION IS FOR THE BITCOINS CONTAINED IN WALLET FILES THAT RESIDED ON SILK ROAD SERVERS, INCLUDING THE SERVERS ASSIGNED THE FOLLOWING INTERNET PROTOCOL ADDRESSES: 126.96.36.199; 188.8.131.52; 184.108.40.206; 220.127.116.11; 18.104.22.168; AND 22.214.171.124 (“SILKROAD SEIZED COINS”).
THIS AUCTION DOES NOT INCLUDE 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 (“DPR SEIZED COINS”).
PLEASE READ ALL INSTRUCTIONS CAREFULLY. FAILURE TO COMPLY WITH ANY OF THE FOLLOWING INSTRUCTIONS WILL RESULT IN DISQUALIFICATION FROM THIS ONLINE AUCTION. Phase I: Bidder Registration
Opens: 9:00 AM EDT on Monday, June 16, 2014
Deadline: Noon EDT on Monday, June 23, 2014
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.
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)
- $200,000 USD deposit sent by wire transfer originating from a bank located within the United States (please provide receipt of transfer)
You must deliver the Required Registration Items by email to USMSBitcoins@usdoj.gov. The USMS will contact each individual who submits a registration form by 5:00 P.M. EDT, June 26, 2014. 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. 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.
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 wire transfer to the original account from which the deposit was received.
Phase II: Online Auction Period
Date: Friday, June 27, 2014, from 6:00 AM EDT to 6:00 PM EDT
Only eligible registered bidders 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 to a separate email address that will be provided to eligible bidders only within the online auction period window, which extends from June 27, 2014 at 6:00 AM EDT until 6:00 PM EDT. 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.This auction is for 9 blocks of 3,000 bitcoins (“Series A Blocks”) and 1 block of 2,656.51306529 bitcoins (“Series B Block”).
|Bitcoins per Block
|Total Bitcoins Available in Series
You must use the Bid Form that will be provided to eligible registered bidders only. Your bid must reflect the number of Series A Blocks (up to a maximum of 9 blocks) and Series B Blocks (up to a maximum of 1 block) that you wish to purchase. A bid on more than one block from the Series A Blocks 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 of Series A means that bidder will accept 1, 2, 3, 4 or 5 Series A Blocks at the per block offer price). 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 fewer than all of the Series A blocks are sold to the highest bidder, the remaining blocks will be sold to the successive highest bidders until all blocks are sold.
Phase III: Award and Sale Close
On Monday, June 30, 2014, by 5:00 PM EDT, the USMS will notify the winning bidder/bidders that their bid/bids has/have been selected. Any winning bidder must send the purchase price funds (less the $200,000 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 5:00 PM EDT, Tuesday, July 01, 2014. 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.
Bitcoins will be transferred to winning bidders in the order that each winning bid was received. No bitcoin transfer will be made until the USMS has confirmed receipt of all purchase funds. The winning bidder(s) will be given private instructions related to the transferring of the bitcoins.
TERMS OF SALE:
- Cash. 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 5:00 PM EDT on Tuesday, July 01, 2014. 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, JULY 01, 2014, AT 5:00 PM EDT WILL RESULT IN FORFEITURE OF THE BIDDER’S DEPOSIT.
- Transfer Fees. Any transfer fees associated with the transfer of the bitcoins will be paid by the buyer.
- Block Transactions. The USMS will only sell the bitcoins in the Series A and B Blocks as described above. No bitcoin transfer will be made until the USMS has confirmed receipt of all 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.
- 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 prior to the transfer of the bitcoins.
- The USMS does not make any representations or warranties regarding Bitcoin.
- 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, (b) Bitcoin characteristics, uses or value, or (c) specifics of the auction process other than information provided in these documents.
- 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.