USA To Hold Auction Of Seized Bitcoin

The six-hour online auction will be held on January 22 with the 3,813 bitcoins offered for sale
12 January 2018   923

The U.S. government will hold an auction of about 3,813 bitcoins that were seized in federal criminal, civil and administrative cases, the U.S. Marshals Service said on Thursday.

According to the statement, the six-hour online auction will be held on January 22 with the 3,813 bitcoins offered for sale in 11 blocks - five of 500 bitcoins, five of 100 bitcoins and one block of around 813 bitcoins.

Participants will have to stump up a $200,000 deposit to take part, and bids will have to be made in cash in U.S. dollars.

The government held three auctions in 2014 and 2015 for bitcoins seized during the prosecution of the creator of Silk Road, an online black market where the virtual currency could be used to buy drugs and other goods.

Silk Road operated for more than two years, generating more than $214 million in sales of drugs and other illicit goods using bitcoins, before being shut down in October 2013.

SEC Suspends Trading in 3 Companies

On Friday The U.S. Securities and Exchange Commission temporarily suspended the trading of three companies as they made the purchase of cryptocurrency and blockchain-related assets
17 February 2018   103

According to the announcement, the trade of  Cherubim Investments, Inc., PDX Partners, Inc., and Victura Construction Group, Inc. will be suspended between 9:30 a.m. EST Friday and March 2. The notice was dated Feb. 15.

SEC stated that its trading suspension orders state that recent press releases issued by CHIT, PDXP, and VICT claimed that the companies acquired AAA-rated assets from a subsidiary of a private equity investor in cryptocurrency and blockchain technology, among other things.

The release also indicates additional reasons for the suspensions. The agency’s orders also say there are questions regarding the nature of the company's business operations. In case of CHIT, the Commission suspended trading in the securities because of its delinquency in filing annual and quarterly reports.

In August 2017, the SEC  issued a warning for investors about the companies that may publicly announce ICO or coin-related events to affect the price of the company’s common stock.

Fraudsters often try to use the lure of new and emerging technologies to convince potential victims to invest their money in scams. 

U.S. Securities and Exchange Commission