U.S. agency plans to sell seized Bitcoin

The United States Marshals Service (USMS) announces the sale of almost 660 Bitcoin (BTC). In total, BTC with a total value of over 4.25 million US dollars will go under the hammer. The auction is scheduled to take place on November 5.

Bitcoin of the cryptosoft

According to the USMS, Bitcoin with a value of 4.25 million US dollars is up for sale. According to the cryptosoft, interested parties will be able to register between 22 and 29 October and place their bid after paying a deposit. If a bid is accepted, the deposit will be deducted from the cryptosoft bid and retained. Those who are left empty will receive their deposit of US$200,000 fully refunded. The message reads as follows:

“The winning bidder’s deposit will be retained by the USMS and credited to the purchase price. The deposit from a bidder whose bid was not selected as a winning bid will be returned to the original account from which the deposit was received.

The USMS plans to offer said Bitcoin in two tranches. The first round consists of six blocks of 100 BTC each and round two consists of one block of 60 BTC each. The offers are based on current market prices and interested parties must loosen at least 380,000 US dollars for the purchase. It can therefore be assumed that the auction is aimed specifically at institutional investors.

Bitcoin come mainly from crypto trader

The 660 BTC offered are confiscated tokens from various criminal and civil cases in recent American legal history like this https://www.forexaktuell.com/en/crypto-trader-scam/. The abbreviation DEA is frequently used in the processes listed by name. This stands for “Drug Enforcement Agency”, the US anti-drug agency. This leads to the conclusion that the majority of the crypto trader confiscated BTCs originate from the Darknet trade with prohibited narcotics.

In addition, the USMS announcement states that part of the BTCs offered were owned by Thomas Mario Constanzo. In March, a US court sentenced the Bitcoin trader to 41 months’ imprisonment for money laundering activities. The district court also ordered the seizure of 81 BTC, which are now also under the hammer.

Silk road sale still unchallenged
The auction follows a whole series of sales of confiscated Bitcoin by US authorities. We reported in detail on the auction of over 3,800 Bitcoin in January of this year.

The highlight of the long tradition of Bitcoin auctions, however, was the auction of the seized Silk Road Bitcoin. In three attempts in 2014 and 2016, the authorities offered a total of over 144,000 BTC from the property of Silk Road founder Ross Ulbricht for sale. One of the customers at the time, Tim Draper, has since become a dazzling figure in the Bitcoin cosmos. The billion-dollar venture capital investor made the USMS 40,000 BTC easier at the time and continues to cause a stir with bullish price forecasts. Whether Draper would like to participate also this time in the auction, is however not known.

New banks for Bitfinex and Tether (USDT)

The criticised crypto exchange Bitfinex is relocating its banking operations to Hong Kong. The bagged “stable coin” Tether has also found a new bank in the Bahamas after the debacle over the Noble Bank.

As complaints from Bitfinex customers who could no longer make Fiat deposits increased, some saw a large-scale exit scam in progress. (False) reports of a supposed delisting of the stable coin by the Exchanges KuCoin and Binance did not help the USDT exchange rate any more than did the strengthening of the competition, for example in the form of the Gemini Dollar (GUSD).

Hong Kong and the Bahamas

Now both Tether and Bitfinex are said to have found new banks to handle their business. As The Block reports with reference to insider sources, Bitfinex is supposed to move to Hong Kong. There Bitfinex should maintain a private account with the bank PROSPERITY REVENUE MERCHANDISING LIMITED. Citibank is to act as an intermediary bank for transfers in US dollars to Bitfinex. PROSPERITY REVENUE MERCHANDISING LIMITED is owned in part by HSBC Holding. Bitfinex has not yet commented on the rumours, but an announcement by the company on October 16th has attracted attention: The Crypto Exchange has a “new, improved and increasingly robust system” for the transfer of Fiat currencies to Bitfinex.

Tether Limited, the company behind the stable coin, has also apparently transferred its banking operations from Noble Bank to the Bahamas. She has been a customer of Nassauer Deltec Bank for several weeks now. The bank is said to have already received initial enquiries from over-the-counter trading desks about the opening of accounts for USDT redemption. This is the result of insider statements made by The Block.

Tether price remains depressed

It is questionable whether the bank bill will help the image of the stable coin USDT. As long as Tether Limited does not have itself audited by every trick in the book, doubts remain as to whether the US dollar will fully cover Tether. So it is not surprising that these concerns are still reflected in the price of the stable coin. Currently, at 0.95 US dollars, the stable coin is still below the target value of one US dollar.

The recent price slump at Tether (USDT) has provided plenty of discussion material in the crypto community over the past few days. In view of the impending insolvency of Noble Bank, where the Bitfinex crypto exchange held most of its tether deposits, both Bitfinex and Tether had to look for a new partner bank. The fact that Tether and Bitfinex were customers of Noble Bank gave rise to speculation about the integrity of the crypto exchange. In addition, there were the entanglements of Bitfinex, Tether and Noble Bank, personified by Brock Peirce.