Why Tim Draper bought an auction's entire bitcoin cache

Venture Capitalist Tim Draper bought the entire cache of bitcoins confiscated when the US shut down the online marketplace Silk Road. The bitcoins were auctioned by the US Marshals Service Friday, and Draper is partnering with Vaurum to bring bitcoin to emerging markets.

|
Lucy Nicholson/Reuters/File
A bitcoin sticker is seen in the window of Locali Conscious Convenience store, where one of Southern California's first two bitcoin-to-cash ATMs began operating on June 21, 2014. Venture Capitalist Tim Draper bought the entire cache of bitcoins from an auction by the US Marshall's Service.

The identity of the man who bought the entire cache of the online currency bitcoin auctioned off by the US government last week is now known.

Venture capitalist Tim Draper bought all of the nearly 30,000 bitcoins in an auction held by the US Marshals Service this past Friday. The bitcoins were confiscated in October when the FBI shut-down Silk Road, an online market accused of aiding in the sale of illegal goods and services. 

Mr. Draper is the co-founder of the investment firm Draper, Fisher Jurvetson. He will work with Vaurum, a bitcoin exchange startup, to provide bitcoins to emerging markets, according to a statement he posted on Medium.

“Bitcoin frees people from trying to operate in a modern market economy with weak currencies," Mr. Draper wrote. "With the help of Vaurum and this newly purchased bitcoin, we expect to be able to create new services that can provide liquidity and confidence to markets that have been hamstrung by weak currencies."

"Vaurum has launched trading platforms in emerging markets, and we will be partnering with Tim to leverage the pool of 30,000 bitcoins as a liquidity source," Avish Bhama, CEO of Vaurum, told The New York Times. "It’s still quite difficult to get access to bitcoin in these developing economies— and that’s exactly where it is needed the most."

There was some controversy around the auction of the cryptocurrency. On June 18, the Marshals Service accidentally leaked the name of bidders in an email that was supposed to update bidders on the auction's guidelines. The list of auction participants included a musician, professor, and the head of public policy at Yelp, according to The New York Times.

In an announcement Tuesday, the Marshals Service announced that one unnamed person bought the entire amount of bitcoins being auctioned. There were 45 registered bidders and 63 bids in the auction, according to the Marshals Service. 

You've read  of  free articles. Subscribe to continue.
Real news can be honest, hopeful, credible, constructive.
What is the Monitor difference? Tackling the tough headlines – with humanity. Listening to sources – with respect. Seeing the story that others are missing by reporting what so often gets overlooked: the values that connect us. That’s Monitor reporting – news that changes how you see the world.

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to CSMonitor.com.

QR Code to Why Tim Draper bought an auction's entire bitcoin cache
Read this article in
https://www.csmonitor.com/Business/2014/0702/Why-Tim-Draper-bought-an-auction-s-entire-bitcoin-cache
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe