The protective order obligates them to hold them until the civil complaint has been determined. In real terms, that means until it's been established - either by trial or by a plea - that any of the offences which allow confiscation of the assets (including the BTC) have been committed.
The spokesperson said that they would "probably" liquidate the seized BTC. They could, of course, fake the sale and hold onto all of them for use in future law enforcement operations.
If they are sold, it will likely be by public auction and not some method which allows purchasers to remain anonymous.
Topic: If they do, when will the FBI announce to sell their alledged 600k BTC stash? - page 3. (Read 4209 times)
October 07, 2013, 07:18:46 PM
October 07, 2013, 06:58:34 PM
It's not like there will be more Bitcoins after the liquidation than before so the value won't change. If they do liquidate the BTC all at once and it will be that many there will be a very high amount of slippage probably and it will be a great buying opportunity. No idea how such a liquidation process takes place though.
If they don't get the 600k BTC and DPR dies with them then there will be 600k BTC less in circulation and the value of Bitcoin will be up 2.85% overnight (0.6/21).
If they don't get the 600k BTC and DPR dies with them then there will be 600k BTC less in circulation and the value of Bitcoin will be up 2.85% overnight (0.6/21).
I wonder if they even care. Maybe they think its fun or some kind of revenge on the SR community if they crash the market. Do they really need those peanuts caught in slippage?
Peanuts? Liquidating 600k at MTgox would lead to 69827353.77905 USD in slippage. Or nearly 70 M USD in slippage. They would get less than 12 M USD for the coins. And that's gox Stamp likely has less depth. If they are going to do this I'm going to have to think seriously about liquidating part of my stock portfolio. It would be close to getting a donation from the US government ...
Edit:
On Stamp the total buy order sums up to 184977.52, so you could buy the remaining 400k+ BTC for <$0.01 a piece if they liquidated there. Must be fun
October 07, 2013, 06:53:17 PM
It's not like there will be more Bitcoins after the liquidation than before so the value won't change. If they do liquidate the BTC all at once and it will be that many there will be a very high amount of slippage probably and it will be a great buying opportunity. No idea how such a liquidation process takes place though.
If they don't get the 600k BTC and DPR dies with them then there will be 600k BTC less in circulation and the value of Bitcoin will be up 2.85% overnight (0.6/21).
If they don't get the 600k BTC and DPR dies with them then there will be 600k BTC less in circulation and the value of Bitcoin will be up 2.85% overnight (0.6/21).
I wonder if they even care. Maybe they think its fun or some kind of revenge on the SR community if they crash the market. Do they really need those peanuts caught in slippage?
October 07, 2013, 06:50:33 PM
The FBI doesn't have 600k bitcoins, that's an estimate for what could be left that they haven't accessed. That money may die with DPR in prison. It could've already been partially liquidated by DPR.
The real question is what will they do with the 27,000BTC they actually have as of this moment in time.
The real question is what will they do with the 27,000BTC they actually have as of this moment in time.
They already indicated to sell them after the trial.
http://www.forbes.com/sites/kashmirhill/2013/10/04/fbi-silk-road-bitcoin-seizure/
October 07, 2013, 06:50:01 PM
It's not like there will be more Bitcoins after the liquidation than before so the value won't change. If they do liquidate the BTC all at once and it will be that many there will be a very high amount of slippage probably and it will be a great buying opportunity. No idea how such a liquidation process takes place though.
If they don't get the 600k BTC and DPR dies with them then there will be 600k BTC less in circulation and the value of Bitcoin will be up 2.85% overnight (0.6/21).
If they don't get the 600k BTC and DPR dies with them then there will be 600k BTC less in circulation and the value of Bitcoin will be up 2.85% overnight (0.6/21).
October 07, 2013, 06:48:30 PM
“That incorrectly understands BTC and its use,” says Patrick Murck, general counsel at the Bitcoin Foundation. “1 BTC could change hands 9.5m times and generate ‘sales revenue’. In addition, many people don’t realize that, for the majority of Silk Road’s existence, the value of 1 BTC was less than $7 USD. It is only as recently as March 2013 that the value has risen over $100 USD.”
80million dollars is way over the top. He still probably has a bunch of BTC somewhere that they haven't found yet. Some were probably liquidated by DPR 'n friends somewhere along the way as well.
80million dollars is way over the top. He still probably has a bunch of BTC somewhere that they haven't found yet. Some were probably liquidated by DPR 'n friends somewhere along the way as well.
October 07, 2013, 06:44:09 PM
This post tries to explore the point in time most likely that the FBI or any other entity in their place may announce the sale of their 600k BTC stash (78M USD at current prices).
Given they do so AT ALL. Representatives asked what to do with their seized Bitcoins have already announced that they will most likely "just liquidate them." after the trail. That goes for the already seized 26k BTC (worth 3.38 M USD at current prices) of Silk Roads hot wallet as well as the alledged 600k BTC in comissions, still held by Ulbricht in some wallet encrypted with a password possibly only known to himself. The guy is facing a life long sentence in prison if not for his drug business alone then maybe for some of the other charges brought up against him (including attempted assassination). This makes his vast fortune mostly useless to him and may be part of a bargain he strikes with prosecutors to drop charges or buy him lesser time in jail.
Just imagine the market's reaction the day it learns that 5% of all BTC in existence will be sold into the market after trail is over..
If it is exactly 600k BTC or maybe less is not so much important, as it will be a VERY large sum anyway. The more important question is WHEN the authorities announce that they have taken control over the money and will thus sell it into the market after the trial.
1 vote per user
Given they do so AT ALL. Representatives asked what to do with their seized Bitcoins have already announced that they will most likely "just liquidate them." after the trail. That goes for the already seized 26k BTC (worth 3.38 M USD at current prices) of Silk Roads hot wallet as well as the alledged 600k BTC in comissions, still held by Ulbricht in some wallet encrypted with a password possibly only known to himself. The guy is facing a life long sentence in prison if not for his drug business alone then maybe for some of the other charges brought up against him (including attempted assassination). This makes his vast fortune mostly useless to him and may be part of a bargain he strikes with prosecutors to drop charges or buy him lesser time in jail.
Just imagine the market's reaction the day it learns that 5% of all BTC in existence will be sold into the market after trail is over..
If it is exactly 600k BTC or maybe less is not so much important, as it will be a VERY large sum anyway. The more important question is WHEN the authorities announce that they have taken control over the money and will thus sell it into the market after the trial.
1 vote per user
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