Tim Draper wins $19 million Bitcoin government auction

Posted Jul 3, 2014

Tim Draper, a founding partner of venture capital firm Draper Fisher Jurvetson, won a government auction of around $19 million worth of the Bitcoin currency. Avish Bhama, the CEO of a Bitcoin-related startup called Vaurum, published a blog post on Tuesday about the deal. He said that Draper would hand over the ~30,000+ Bitcoins to the startup to build up liquidity in overseas Bitcoin markets.

?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,? stated Bhama. ?It?s still quite difficult to get access to bitcoin in these developing economies? ? and that?s exactly where it is needed the most. Our goal is to build reliable infrastructure and increase liquidity, which are two major challenges in the ecosystem.?

The Bitcoin collection was auctioned by the U.S. Marshals Service after a seizure from Silk Road. Silk Road was known for selling illegal goods using Bitcoin. Adam Draper, the son of Tim Draper, runs a startup accelerator for Bitcoin startups called Boost. Vaurum participated in the program this past summer. Both of the Drapers are investors in Vaurum.

[Source: Avish’s Medium blog]