The powers that be insist that bitcoin isn’t a real medium of exchange, so it’s not like there are any number of places willing to take 30,000 of them off their hands at a set, if floating, rate, perhaps about $17 million. Which means they must be property. And so, as with all non-money proceeds of malfeasance seized by the powers that be, like Bernie Madoff’s underwear, they will go on the block, where their real value can be determined.

The U.S. government plans to auction about 30,000 bitcoin, the electronic currency, valued at about $17.4 million, on June 27 the U.S. Marshals Service said.

The bitcoin were seized during an FBI raid in October on the Internet marketplace Silk Road, known as a hub for transactions involving illegal drugs and criminal activities….

The auction will take place on June 27 on the U.S. Marshals Service website over a 12-hour period and consists of nine blocks of 3,000 bitcoins and one block of 2,657 bitcoins….

FBI spokeswoman Kelly Langsmesser confirmed that about 144,342 additional seized bitcoins were transferred from the FBI e-wallet to the U.S. Marshals Service e-wallet. The seized bitcoins are part of the civil forfeiture and criminal action brought against Ulbricht and the assets of Silk Road, the U.S. Marshals Service said in a statement. These coins have not been put up for auction.

U.S. Marshals to auction bitcoin seized in raid on Silk Road market [Reuters]
FBI to Auction Bitcoins on June 27 [WSJ]

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