(Adds details, background, comments from Bitcoin Shop)
By Nate Raymond and Gertrude Chavez-Dreyfuss
July 1 (Reuters) - The U.S. Marshals Service could reveal
more details of its auction of nearly 30,000 bitcoin later on
Tuesday, as the winning bidders are still unknown.
The U.S. Marshals Service held an auction on Friday for
29,655 bitcoin seized during a raid on Silk Road, an Internet
black-market bazaar where authorities say illegal drugs and
other goods could be obtained. Winners were notified on Monday
evening, but the identities of those who put in successful bids
were as of yet unclear.
The auction drew 63 bids from 45 registered bidders on
Friday. "We anticipate making an announcement late this
afternoon," said Lynzey Donahue, spokeswoman for the USMS, who
in the past has said they did not plan to announce the winners.
Several prominent participants have come forward to say that
their bids were not accepted. Barry Silbert of SecondMarket
Holdings, which runs a bitcoin investment platform, said on
Monday his firm was outbid, as did hedge fund Pantera Capital,
which bid below the market price, according to Pantera chief
executive Dan Morehead.
Bitcoin Shop Inc, which trades on the
over-the-counter market OTCQB, said in a release on Tuesday that
its bid had also been rejected. The virtual currency ecommerce
company bid directly in the auction as well as through a
syndicate organized by SecondMarket.
"Bitcoin Shop will continue to evaluate investment
opportunities such as this in the future," the statement said.
The price of bitcoin rose on Tuesday, adding to Monday's
gains. It was last priced at $650.73, up 1.8 percent on the
session, and has gained more than 15 percent since June 25,
according to digital currency exchange Coindesk.
Silk Road was shut after an FBI raid in September 2013 as
agents took control of its server and arrested a Texas man, Ross
Ulbricht, that the authorities said owned and operated the
(Reporting by Nate Raymond and Gertrude Chavez Dreyfuss;
Writing by David Gaffen; Editing by James Dalgleish and Gunna