EY engaged in Australian bitcoin first

This will be the first bitcoin sale process of its kind in Australia and the second globally, after the US Marshals Service conducted several sales during 2015.

Transactions partner Adam Nikitins said EY had been engaged to act on behalf of the undisclosed vendor to sell the bitcoins, which were confiscated as proceeds of crime in 2015.

The sale will be conducted via a 48-hour sealed bid auction beginning at 12.01am AEST on 20 June 2016 and finishing 21 June 2016 at 11.59pm AEST. Bidders will be able to submit bids on 11 lots of 2,000 bitcoins and one lot of approximately 2,518 bitcoins. Bidders are able to bid on one lot or multiple lots.

“Interest in this technology continues to grow. The number of bitcoin transactions since 2012 has quadrupled and parties are seeing more opportunities and uses for the technology,” Mr Nikitins said.

Mr Nikitins said he expected interested parties would predominantly be located in North America and Europe but, given the increasing popularity of bitcoin, this would be a truly global sale.

“With each lot of bitcoin currently valued at more than AUD$1m, we are targeting sophisticated investors who can see the value of investing in a growing digital asset,” he said.

Mr Nikitins said he anticipated interest would come from digital asset investment managers, digital currency exchanges, and investment banks and hedge funds who were experienced in dealing with bitcoins.