BitGo to assist U.S. authorities with custody and sale of confiscated Bitcoin

The U.S. Marshals Service (USMS) has awarded a contract to custody-services provider BitGo to store and sell confiscated cryptocurrency. The announcement is on the site of the General Services Administration.

The value of the contract exceeds $4.5 million, and the term is not specified. The provider must take into account cryptocurrency forks and airdrops. BitGo’s specialists will also assist USMS in the technical aspects of the confiscation process of digital assets.

The U.S. Marshals Service began seeking a contractor in 2020. Prior to that, the agency managed seized cryptocurrency in-house.

In 2014, officials sold 30,000 BTC seized from the darknet marketplace Silk Road. All lots were acquired by venture capitalist Tim Draper.

In February 2020, USMS auctioned 4,040.54 BTC. The coins were purchased by two bidders.

In March 2021, authorities sold at auction 0.7501 BTC for $53,104, which at the time was roughly $9,000 above the market price.

In April, reports indicated that Galaxy Digital, led by Mike Novogratz, to acquire BitGo.