Topic: $37,000,000 in Bitcoin (BTC) for Sale by US Government (Read 653 times)

All of these US auctions are from the proceeds of crime as far as I can tell.

Gox is the obvious alternative. People will get some money back eventually.

Other than that I've hardly ever heard of a hacked exchange having funds recovered from the person who hacked them, let alone given back to customers.

I seem to remember the UK police attempting to contact people who were on Mintpal to return funds to them but it seems like a pretty rare occurrence and that was straightforward recovery from the piece of shit who ran it.

As for BTC-e/Wex since it's in Russia it's not as if you're going to get any justice or honesty. Some seem to think the FSB helped themselves to that and it's probably impossible to tell which funds are honest and which were laundered anyway.

Sorry if it's a bit off-topic considering the discussions above, but I've been wondering for a while: why does this money get auctioned rather than distributed back to the victims? If it was some illegal business and its profits, then auctioning seems to make sense (although the government could get rid of it on exchanges without making a fuss, right?). But what about the cases when exchanges got hacked or an ICO scams people? As far as I understand, even when the money's recovered by the officials, the people who lost it don't get it back. Is that true? If yes, why so? It does not feel just to me.

Coins already on the move.

https://www.blockchain.com/btc/address/3PCZgWkS6dp3hXkPDv7uqJpZgCcEThKiLZ

Naw.. it's going somewhere else... how many exchanges are there now, like, literally hundreds of them. ... not to mention all these other dice sites.

According to this - https://old.reddit.com/r/Bitcoin/comments/f6s07m/lone_bidder_purchased_3991_of_the_4041_btc/

One buyer bought 3991 of the 4041 BTC for sale. I presume the address is known rather than it being a pure guess. It hasn't hit Yobit yet but I'll be watching like a hawk.

Price movement-->>link to x/y/z event that took place just before or around the same time. This auction is a perfect smokescreen. People always do that.

The price went up quite a bit in the last couple of weeks without a decent correction from the top, so here we have that healthy correction. I would be worried if we go up without those corrections every now and then, and technically speaking, the weekly trend remains as bullish even if we have a brief dip below the $9000 level. People need to chill and be happy with those dips.

Doesn't make sense to buy from an auction at prices most likely higher than current market value, only to dump it. If that's the goal, they should just buy from an exchange. And dump it. Odd.

I agree with this. If those btcs will be recieve by a normal people, it will probably be back to circulation because they will probably be affected by the market panic and sell it when times are bad. There is nothing wrong about that because it was their money however they must know from the beggining that the amount of money they invest is the amount of money they are willing to loose.

That's my carefully engineered comment to reflect on the intellect of the people who write 'Omigod they buying millionz of coins to dump on us. We all gone die.'

There were a shit ton of those threads around the first Silk Road auction. Looks like it's still not a dead idea yet.

Anyone who buys bitcoins from such an auction probably does not use yobit. Just a guess.

I've seen not just from him but from a lot of bitcoin followers this sentiment replicated, the fact that bitcoin will reach over $100k within the next few years.

I think the auction is not a great idea just out of how high the entry cost is, but it probably isn't aimed at regular people either so my opinion doesn't matter.

Auction ends in a few minutes. As ever nothing has happened and nothing will happen. We may never find out what was paid either. That's down to the winner to declare it.

I'll be watching Yobit like a hawk in the coming days as I'm sure that's where those psychobear dumps will take place.

My feeling exactly,  except the opening bid price is relatively low only then would the bidder's be able to buy below market price, otherwise,  i bet the bid price is more higher than current price, and if that is the case i don't see how it can affect price,

This is a supposedly clean coin directly from the government,  am sure all the big players will strive to outbid their opponent, it is survival of the highest bidder, so definitely price won't be cheap.

I am afraid that they can't do that, under the current laws. Seized assets from the crime must be converted to cash and used for the proceedings. And this is not just applicable in the United States, but across the globe as well. Even in Japan, the Mt Gox bankruptcy trustee decided to sell most of the remaining coins, in order the compensate the victims of the crime. I heard that he has temporarily paused dumping the coins, but more than half of the recovered coins were already sold when that decision was made.

Since this is an auction and not through exchanges i am not expecting the price to go down like some are expecting.

Since this is a legal proceeding there is nothing to worry about the tainted coins as in the future i am expecting anyone holding the tainted coins will be held responsible when regulations will be active. After the auction it will be submitted to the treasury as it is a public auction.
 

No one buying from this auction is going to get it below market price. It's an auction. People will bid. People like Tim Draper or any of the other big names or institutions are going to bid for it. It will be a price war. They will pay a premium.

So of course, they won't sell any until way after the halving, or at some price above what they bought it for.

Anyone who is bidding does not need the money anytime soon.

Lol funny how they always doing sh*t in the name of pulling down Bitcoin. Just when everyone is rejoicing about the halving and the price of Bitcoin going up, now these ones are talking about auctioning Bitcoin. So, after they have sold the Bitcoin what exactly is going to happen? Will it make the price to fall to a lower price? The price has been going up lately and Bitcoin already reached $9,700+ and it’s heading towards $10,000.

I strongly believe that if this action they are about to take now should cause some setbacks, the price will still pick up after the Halving and would start going up. I am not giving up yet, I will keep holding on to my coins no matter what.

The US Government itself keeps very little of what they seize. Cars / boats / homes / gold toilets from rappers all go up for auction.
Small local and state governments may or may not keep stuff, but for the most part "cash is king" for the government.
Now, a lot of times they might use the car / boat / home  etc. as part of an investigation or undercover work but eventually most of it will wind up on the auction block.

-Dave

What you describe is sometimes executed as an Iceberg order.

You see only the tip of the iceberg. In the background is a bot that keeps putting up buy orders as they are executed. Since a bot does it, it can do this all day, putting up buy orders every 5 minutes, ... watching the order books and not putting in 10 million all at once.

If it's not a bot, it's a built in functionality of the exchange or brokerage or whatever you're using. I find that a bot works better since you control it, but if an exchange has that kind of thing in place, that's cool too.


As for buying at a premium, well, for one, you get government guaranteed coins, you don't need to mix them anymore as they are declared clean and anyone can trace it came from the auction. So, it can, in theory, be sold at a premium too, for those looking to buy so called "virgin" coins.

On the other hand, if you were just to HODL it, it's very clear you can declare the price you paid for it, and the price you would sell it later, and there'd be very little or no questions about the capital gains or taxes or anything of that sort.

One could take advantage of the gov coins, coin join them with a whole bunch of other coins gotten from other places or deals, and they'd all be considered as connected to the gov coins, and you could then sell them all later at profit. Or just hold on to them for the next ten years.

That's a lot of millions of dollars worth of bitcoin, I wonder why they didn't decide to at least try keep a little of it. Can't remember now but isn't there also a government somewhere with a lot of stash of seized btc that they supposedly haven't sold yet? Would be incredible revenue if the moonshot happens for btc!