Authorities may soon reap millions of dollars by selling more than 24,500 bitcoins confiscated from a Melbourne drug dealer.

This was the first time the state of Victoria had seized electronic currency from criminals.

Australian authorities could be sitting on a bitcoin gold mine. Credit:Reuters

The currency's volatility has seen the value of the seized asset jump from $700,000 at the time of the man's arrest to nearly $32 million shortly after it was confiscated. Today the bitcoins were worth about $9.6 million.

The assets are subject to a restraining order and would soon be forfeited to the Department of Justice and sold at auction, but not before the appeal period ends in 28 days. Proceeds would go to the state's consolidated funds.