Auction will sell Bitcoin to the highest bidder

The Finnish government is to hold an auction to sell-off confiscated Bitcoin to the highest bidder.

Some 2,000 Bitcoins will be sold after they were confiscated by police in a drug bust.

The crypto was seized in connection with a Silk Road drugs operation nearly two years ago, according to Finnish-language media outlet Helsingin Sanomat.

The Treasury Department has now recommended that the government holds an auction to sell the cryptocurrency.

Mikko Kangaspunta, chief of the government’s state treasury division, said in a statement to Finland’s press:

“We recommend public auction for the [sale of the] bitcoins.

“An auction can be used to ascertain the buyer and whether the state receives a payment.

“In addition, the risks associated with the handling of bitcoins will be passed on to the buyer in the auction, ”

Appreciating Asset

According to the report, the funds were seized by the Finnish government in June 2016.

Appreciating Asset

According to the report, the funds were seized by the Finnish government in June 2016.

At the time, the value of a single Bitcoin was roughly $600.

Lasse Juhani Kärkkäinen, a key defendant in the case, who police seized 1,666 BTC from, was sentenced to more than 11 years in prison.

He was convicted for selling narcotics and performance-enhancing drugs on Silk Road, the now-defunct dark web marketplace.

Kärkkäinen appealed the decision, claiming that he should be allowed to forfeit the equivalent value of his holdings in euros.

An appellate court turned down his request though and ruled that he must forfeit the coins themselves, which are now worth around $18 million.

As CCN reported, the government recently released new guidelines governing its handling of confiscated crypto assets.

Under the new framework, officials are prohibited from storing them in internet-connected wallets.

This new policy effectively forces them to adopt a cold storage solution and prevents them from disposing of seized cryptocurrencies by selling them on exchanges.

Under the hammer

Finland’s Treasury intends to sell the Bitcoin in a series of auctions to ensure that it reaches the best price.

The 2,000 BTC is worth approximately $21-22 million at the current market value.

This is not the first time seized Bitcoin has been sold at auction from Silk Road-related busts.

During a series of auctions in 2014 and 2015, the US Marshals Service sold off 144,336 BTC belonging to Silk Road operator Ross Ulbricht.

Those auctions netted approximately $48 million for the US Treasury.