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The United States Marshals Service is looking to take care of the recovered cryptocurrencies that were stolen, hacked, or scammed out of. The law enforcement organization is asking for crypto companies to suggest possible ways to liquidate, store, or possibly even return cryptocurrency that was recovered by either seizing or forfeiting. The cryptos that the US Marshals are looking to dispose of were involved in financial crimes. Rumors suggest that crypto trading titans might buy Bitcoin from the US authorities.
A request was posted on FedBizOpps that asks crypto firms for a collaboration with the federal agency. The selected respondent will help the US Marshals Service in disposing of the recovered cryptocurrency in the best possible way. Duties of the selected respondent include storing the digital assets in a secure wallet. The law enforcement organization also requires the chosen firm to be able to auction the cryptocurrency recovered by them.
US Marshals Want Expert Help
The request posted by the agency also mentioned that the federal organization is expecting to seize more cryptocurrencies involved in malicious financial crimes and wants a crypto firm to help them with the best practices of storing the seized assets securely and disposing of it eventually.
The responses will help the law enforcers better understand the industry and make better and informed decisions. The request is quite vague and general when it comes to expectations from the interested firms. Following statement has been extracted from the announcement: “The contractor shall remain capable of taking custody of all types and quantities of virtual currency without limitation, throughout the performance of this contract. This includes both coin and token types of currency.”
As for security expectations, the agency is pretty clear: the crypto wallet must be safe from human system failures, theft, human error, and “acts of God”. Interested funds must be able to trade cryptos for physical cash to be eligible for the job.
Will Bitcoin Whales Step in?
Many crypto giants buy Bitcoin, Ethereum, and other cryptos in bulk from governments in auctions like these. The activity allows these buyers to gain a larger exposure to the asset class. Take the American Bitcoin bull and venture capitalist Tim Draper for instance. The crypto asset trader bought over 31,000 BTC in the first two legs of the Silk Road auctions in 2014.
Draper later told that he had paid $14 more than the Bitcoin price of that time for each coin in his first batch which consisted of over 29,000 Bitcoins. However, it also worth noting that the first auction was more successful with 45 buyers participating while only 9 took part in the second Silk Road auction.
Chances are that if the US Marshals Service eventually auctions off the recovered cryptocurrencies, the auctions will receive a successful response from big buyers. These events are a great way for them to get exposure to the crypto industry and getting started.