On Tuesday, the US Marshals Service announced that one bidder has won all of the around 30,000 Bitcoins that were auctioned on Friday.
In a statement, Lynzey Donahue, a spokeswoman for Marshals Service said, “The U.S. Marshals Bitcoin auction resulted in one winning bidder. The transfer of the Bitcoins to the winner was completed today.”
However, the Marshals Service neither identified the winner, nor disclosed the winning bid.
While instructing bidders on its website, Marshals Service had announced that it would notify the winners as well as the losers of the auction on Monday, no later than 5 pm Eastern time. The website further said that the winning bidders can move funds to the organization by Tuesday, 5 pm.
On Monday, emails were sent to many bidders in which they were notified that they have not yet won the auction. Uptil now, many distinguished bidders have claimed that they were outbid, including a syndicate run by Pantera Bitcoin, Coinbase, SecondMarket and the Bitcoin Shop.
On Monday, in a statement, Barry Silbert, chief of SecondMarket said, “While we are disappointed that our syndicate did not emerge as a winner in the auction, we are pleased to see such strong interest from other bidders. The auction was a clear success and the result quite positive for Bitcoin.” He further said that his syndicate got 186 bids from 42 bidders.
On Monday, Marshals Service said that 45 registered bidders took part in the event, and also that the agency received a total of 63 bids during the auction.
Moreover, since the auction has been announced by Marshals Service in early June, number of mistakes have been committed. A list of possible bidders was mistakenly released in an email that came from the agency on June 18. Also, apparent typographical mistakes were done in the instructions posted initially on the website of Marshals Service, which created lots of ambiguity regarding the registration deadlines.
Furthermore, some bidders claimed that some of the other features of the process were unclear. On Monday, Mr. Waters said that he bid on one block of 3,000 Bitcoins at USD 403 each, which was much less than Bitcoin’s market price, because he believed syndicates won’t be allowed by Marshals Service.
According to Bitcoin Price Index of CoinDesk, on Tuesday, Bitcoin’s price continued to increase, reaching a record high of around USD 655, which was earlier around USD 639 on Monday. Also, just when the auction began, Bitcoin’s price was around USD 570.
With help from federal prosecutors in Manhattan, and FBI, the US Marshals Service organized the online auction for around 29,656 of the Bitcoins grabbed from Silk Road, an online market which no longer operates. The site was closed in October, and was alleged of helping the sale of illegitimate goods and services.
The computer-generated currency, Bitcoin created by an unknown programmer, has gradually become popular in the mainstream since it first appeared online in the year 2009.