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Crypto extravaganza: Uncle Sam is auctioning off $377k worth of seized coins

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TL; DR Breakdown

  • US GSA to auction $377k worth of BTC and LTC seized from people
  • Crypto seized for tax noncompliance
  • Auction to run till Monday evening

The US government is disposing of its crypto stash comprising of Bitcoins and Litecoins seized from rogue citizens. The auction will be conducted by the GSA (General Service Administration) which is the agency tasked with selling any excess assets in government’s possession. These include houses, furniture, and any other kind of disposal property seized by the state. Most of the confiscated properties are as a result of unpaid federal taxes.

Now, it appears that some taxpayer didn’t pay up, so Uncle Sam took their crypto holdings that will now be auctioned to recover the unpaid tax amounts. The crypto coins currently in the GSA’s possession include 150.2 Litecoins and 8.93 Bitcoins with a combined value of around $377k. The GSA issued a press release on its official website announcing the auction. A total of 16.99 BTC worth over $900k have been auctioned by the GSA on behalf of the US government since the start of 2021.

Are crypto holders in trouble?

The news of a citizen’s digital assets being confiscated and auctioned by the government isn’t exactly good news for crypto fans and investors. However, as mentioned, the federal government took action only after the taxpayer in question failed their duty. In government’s point of view, digital assets aren’t any different from other property like real estate and machinery.

This brings forth another thorny issue on how the government treats digital assets. Some people may argue that the government has no right to seize crypto assets since it hasn’t fully accepted them or instituted proper regulations for their use.

Bid and pay

According to information availed, the GSA opened the auction at 5 p.m on Friday, and bids will be allowed in until 5 p.m on Monday. To place a bid, the entrant must first register with the GSA. There will be 11 slots for the crypto bids. Winners will be expected to pay for their newly acquired stash before June 23.

The bidder will need to have a crypto wallet to receive the digital coins, and network transactions fees will apply. Normally, the GSA holds an inspection for assets on auction, but that will not apply in this case since the assets in question are not tangible.

Nick James

Nick James

Nick is a technologist with a special interest in Blockchain technology and cryptocurrencies. He has actively participated in the industry for several years. His main passion is sharing news within the crypto community.

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