Australia to sell bitcoins confiscated as proceeds of crime

Ernst & Young was running the process, which is only the second such bitcoin auction in the world after the U.S. Marshals Service sold 144,000 bitcoins over a two-year period that had been confiscated from Ross Ulbricht, who founded the online drug bazaar Silk Road, the accountancy firm's transaction partner Adam Nikitins said.

The Victoria state government has confirmed that is had seized about 24,500 bitcoins in late 2013 from a Melbourne drug dealer.

Bitcoin is a digital currency that allows people to buy goods and services and exchange money without involving banks, credit card issuers or other third parties.