US Fed agency auctioned seized Bitcoin at 21% higher than the actual market value

Following the French government’s decision to sell 611 BTC in an auction this week, the United States government completed a Bitcoin auction recently. US General Services Administration, or GSA, auctioned off 0.7501 Bitcoin; the federal agency has made more than $53,000 from the sale. 

Interestingly, the aforementioned lot of 0.70501 BTC was sold roughly 21% more than the actual market price of Bitcoin, as it was purchased for $53,104. At the end of the bidding process, Bitcoin was trading close to $55,400. GSA declined to reveal the source of the crypto assets due to “privacy concerns.”But they said that such items for their auctions can come from various sources “including seized property.”

However, the two-day bidding event marked the first time that GSA allowed public crypto bids. It typically offers surplus government vehicles and office supplies. Acting Regional Administrator Kevin Kerns with GSA’s Southeast Sunbelt Region shared his comments about the auction with The Washington Post. According to him, “auctioning off this share of cryptocurrency broke new ground for our GSA Auctions platform” and that the agency was “extremely pleased by the enthusiasm” from its bidders.

While this may be a first for GSA, other Fed authorities have auctioned Bitcoin in the past. Since 2014, US Marshals Service has auctioned about 175,000 Bitcoins confiscated from the infamous Silk Road case. 

Across the globe, seized Bitcoins often end up being auctioned as well. At the beginning of the year, Finnish Customs decided to sell 1,666 Bitcoins, which were earlier confiscated in connection with criminal investigations related to drugs.

However, the latest was an auction from the French Agency for the Recovery and Management of Seized and Confiscated Assets. During which, a bidder paid more than the retail price of Bitcoin, one that was five times more than the asset’s current value for the 0.11 BTC lot.