US holds final auction of bitcoin from Silk Road case

By Nate Raymond and Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) – The U.S. government on Thursday began its final auction of bitcoins seized during the prosecution of the creator of Silk Road, an online black market where the virtual currency could be used to buy illegal drugs and other goods.

The six-hour online auction began at 8:00 a.m. EST for about 44,341 bitcoins worth more than $17.5 million.

Genesis Global Trading, a subsidiary of Digital Currency Group (DCG), planned to participate in the auction, according to Barry Silbert, a prominent bitcoin investor and DCG founder and chief executive officer, in an e-mail to Reuters.

DCG is a holding firm focused on investing and developing businesses that deal in bitcoin and other cryptocurrencies. It recently raised a round of funding from some large U.S. financial companies such as

Read more ... source: TheBitcoinNews