itBit, the New York- based bitcoin exchange announced that it has won 10,000 bitcoins that were auctioned off by the US Marshals Service.
The bid by itBit was organized on behalf of the syndicate of the exchange’s and OTC trading clients.
The director of Trading at itBit, Bobby Cho stated,“We confirm that itBit’s auction bid, organized on behalf of a syndicate of our exchange and OTC trading clients, won five blocks in the final USMS auction.”
Though this is not the first time itBit has won in an auction. Back in March, it has won 3,000 bitcoins out of 50,000 bitcoins in the third auction conducted by the U.S. government.
In May, the bitcoin exchange has become the first virtual currency to receive a charter to operate as a trust company in the state of New York.
A subsidiary of Digital Currency Group, Genesis Trading has also participated in the auction as a registered bidder but as stated by the U.S. Marshals Service that the company did not win any blocks from the auction sale.
At the auction, a total of 44,341 bitcoins which are about the worth of $15 million were auctioned by the US Marshals Service. The coins were divided into 21 blocks of 2,000 bitcoins along with one block of 2,341 bitcoins.
The auction was carried out during a six- hour period, starting from 8 a.m. and ending at 2 p.m. Eastern.
The first auction that took place has faced some complications such as the agency has released the names of the potential bidders prior to the auction.
During the second auction, there was a certain drop in bidders as some of the bidders have decided to sit off due to the events of the first auction.
The bitcoins that were auctioned off were actually seized by the Federal Bureau of Investigations during the arrest of Ross Ulbricht, the man behind the online criminal market Silk Road and a physics graduate from the University of Texas at Dallas.
Ross Ulbricht was arrested on October 2013 and was charged with money laundering, computer hacking, conspiracy to traffic narcotic, and procuring murder.
The charge of procuring murder was dropped off and was convicted of the other remaining charges after a Jury trial which was concluded in February 2015. He was sentenced to life in jail.