[Offically Announced] U.S. To Sell Silkroad's Bitcoins

kik1977

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Quote from: BurtW on January 17, 2014, 08:00:08 PM

Quote from: Bitcoin Oz on January 17, 2014, 07:54:30 PM

The guy hasn't even had a trial yet and they are selling off his property. Thats some next level bullshit right there.

Evidently the court can do this. Who knew? I assumed they would have to wait until after the trial. Learn something new every day.

From what I understand DPR has claimed ownership interest of the 144,000 BTC so that will tie up those BTC for a while.

I assume they can sell the smaller wallet sooner since DPR did not contest the ownership of those BTC.

In principles, LEAs cannot sell properties belonging to the defendant until he's proven guilty. BUT it's a common practice to sell stuff before the end of the trial when (valuable) stuff is sensible to depreciation. This is in the interest of both partied, the defendant and the State, whoever wins the trial, to keep the value until the end of it.

jongameson

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Quote from: BigJohn on January 17, 2014, 03:59:00 AM

Soo.... hold on now. The activities of the Silk Road were so nefarious that they just had to get shut down. We can't have evil people giving money to some DPR kid. But hey, it's fine if the government profits off of those same nefarious acts? So it's wrong for people to profit off of illegal drugs, but perfectly fine for the government to now profit off of it?

If they really want to set an example, I say they should destroy the coins.

if the govt profits off it, it will induce a "fear" factor when people take the drugs. thus causing the paranoia, anxiety, that the govt backs up in claims about marijuana.

PrintMule

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Quote from: grumpy619 on January 20, 2014, 04:51:02 PM

This is assuming that SR did not have a password to the wallet the bitcoins were in? How were the Feds able to get access to the coins. They must have been in a wallet right?

Gee, I don't know, maybe this kit helped ?

TippingPoint

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The best advertising is free advertising.

Prepare now to bump and amp the government announcement and news reports on all available media.

Put Free wallets in the hands of everyone in advance.

Compare it to previous government auctions, such as Carson City Silver Dollars.

http://www.gsadollars.com/GSA_Hoard_History.html

BurtW

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Quote from: grumpy619 on January 20, 2014, 04:51:02 PM

This is assuming that SR did not have a password to the wallet the bitcoins were in? How were the Feds able to get access to the coins. They must have been in a wallet right?

The two addresses in question are the two addresses that are owned by and set up by the FBI. As they found BTC they transferred them to these two addresses that they control. I do not know exactly how they found/got the BTC to transfer them, but the fact remains that they control the two addresses:

https://blockchain.info/address/1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX

about $24 million from the Silk Road web site/server.

https://blockchain.info/address/1FfmbHfnpaZjKFvyi1okTjJJusN455paPH

about $120 million from DPR himself.

They only have permission to auction off the smaller amount. The larger amount is tied up because DPR has claimed ownership of them.

grumpy619

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This is assuming that SR did not have a password to the wallet the bitcoins were in? How were the Feds able to get access to the coins. They must have been in a wallet right?

bitpop

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Quote from: e521 on January 17, 2014, 07:44:22 PM

Quote from: SirBitsalot on January 17, 2014, 07:20:40 PM

Quote from: bitpop on January 17, 2014, 09:01:15 AM

WHEN? All this fud is lowering the price. It's going to take them months.

Better months than never!

What's FUD on FBI selling some coins on regular auction?
Somebody will buy it and what?
This only legitimate bitcoin even more

Well the fud is to keep bringing the topic up, lowering prices when this wont happen for months.

BurtW

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Quote from: jubalix on January 17, 2014, 08:36:27 PM

Quote from: BitChick on January 17, 2014, 05:37:08 PM

Anyone have an idea where these auctions usually take place? Not that I have any spare change to spend but I am curious.

I do think this is actually good for BTC. Besides the minor panic selling yesterday and today, this is all free advertising! Grin

I guess I am a bit more concerned about what will happen to Ulbricht's 144,000 coins that are still in limbo. Hopefully he lost the keys somewhere! Cheesy

they don't have the keys

Yes, they do. They created both accounts and moved all the BTC into them. So, yes, they have the keys.

jubalix

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Quote from: BitChick on January 17, 2014, 05:37:08 PM

Anyone have an idea where these auctions usually take place? Not that I have any spare change to spend but I am curious.

I do think this is actually good for BTC. Besides the minor panic selling yesterday and today, this is all free advertising! Grin

I guess I am a bit more concerned about what will happen to Ulbricht's 144,000 coins that are still in limbo. Hopefully he lost the keys somewhere! Cheesy

they don't have the keys

scintill

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Quote from: BurtW on January 17, 2014, 08:00:08 PM

Quote from: Bitcoin Oz on January 17, 2014, 07:54:30 PM

The guy hasn't even had a trial yet and they are selling off his property. Thats some next level bullshit right there.

Evidently the court can do this. Who knew? I assumed they would have to wait until after the trial. Learn something new every day.

From what I understand DPR has claimed ownership interest of the 144,000 BTC so that will tie up those BTC for a while.

I assume they can sell the smaller wallet sooner since DPR did not contest the ownership of those BTC.

It is a little surprising, but doesn't sound terribly unfair. IANAL, but I think of it as, they had a little trial with the judge who signed the forfeiture order. They presented evidence that the server was running SR and had some coins on it. That's a pretty slam-dunk case, so they can take the coins. They haven't yet finished the trial to see whether Ulbricht ran SR, so he can keep his personal coins.

grumpy619

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I am on this like white on rice or asian on rice.

BurtW

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Quote from: Bitcoin Oz on January 17, 2014, 07:54:30 PM

The guy hasn't even had a trial yet and they are selling off his property. Thats some next level bullshit right there.

Evidently the court can do this. Who knew? I assumed they would have to wait until after the trial. Learn something new every day.

From what I understand DPR has claimed ownership interest of the 144,000 BTC so that will tie up those BTC for a while.

I assume they can sell the smaller wallet sooner since DPR did not contest the ownership of those BTC.

BurtW

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All paid signature campaigns should be banned.

http://www.slate.com/blogs/future_tense/2014/01/17/silk_road_bust_get_your_bitcoins_at_this_upcoming_civil_forfeiture_auction.html?wpisrc=burger_bar

I do not see why they would not just auction them off in blocks on one of their auction sites like these:

http://www.usa.gov/shopping/shopping.shtml

http://www.treasury.gov/auctions/treasury/rp/

http://www.usmarshals.gov/assets/sales.htm

for example. They take bids, collect the money (and all information for tax purposes) from the winner, deposit the cash, send the BTC to the winners.

I hope they break it all up into reasonable sized lots so us "little guys" can bid on them.

Bitcoin Oz

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Wat

The guy hasn't even had a trial yet and they are selling off his property. Thats some next level bullshit right there.

e521

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Quote from: SirBitsalot on January 17, 2014, 07:20:40 PM

Quote from: bitpop on January 17, 2014, 09:01:15 AM

WHEN? All this fud is lowering the price. It's going to take them months.

Better months than never!

What's FUD on FBI selling some coins on regular auction?
Somebody will buy it and what?
This only legitimate bitcoin even more

Tomatocage

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brb keeping up with the Kardashians

So they're getting rid of evidence even before he's been convicted? lol

SirBitsalot

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Quote from: bitpop on January 17, 2014, 09:01:15 AM

WHEN? All this fud is lowering the price. It's going to take them months.

Better months than never!

Littleshop

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Quote from: BitChick on January 17, 2014, 05:37:08 PM

Anyone have an idea where these auctions usually take place? Not that I have any spare change to spend but I am curious.

I do think this is actually good for BTC. Besides the minor panic selling yesterday and today, this is all free advertising! Grin

I guess I am a bit more concerned about what will happen to Ulbricht's 144,000 coins that are still in limbo. Hopefully he lost the keys somewhere! Cheesy

A committee will be formed on what to do with them. It could take a while.

BitChick

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Quote from: BitchicksHusband on January 17, 2014, 06:36:42 PM

Quote from: seriouscoin on January 17, 2014, 05:40:37 PM

Quote from: BitChick on January 17, 2014, 05:37:08 PM

Anyone have an idea where these auctions usually take place? Not that I have any spare change to spend but I am curious.

I do think this is actually good for BTC. Besides the minor panic selling yesterday and today, this is all free advertising! Grin

I guess I am a bit more concerned about what will happen to Ulbricht's 144,000 coins that are still in limbo. Hopefully he lost the keys somewhere! Cheesy

You must be blonde.....

They already got the key and moved the coins to their own address. Can you read btw?

Yes she is blonde (well, fake)...

Maybe she missed an article somewhere along the way. But yes, the coins are no longer in limbo. They have been moved to an FBI controlled account.

Try some manners, dude.

Ahhh. My chivalrous husband is sticking up for me!

jubalix

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Quote from: Littleshop on January 17, 2014, 02:45:02 PM

Quote from: jubalix on January 17, 2014, 03:32:37 AM

this is the best news ever

[1] You have a law enforcement agency of the US recognising the not only the value in bit-coins, but showing it is fully legal to sell them for FIAT. You probably couldn't ask for a better endorsement. (I wonder if the need a money transmitters licence to do this?)

[2] They are going to have to auction them of for the best price, I think the bids will really go up.

[3] the $25 mill / 26K of coins is not that much given the volume of BTC traded a day ~ about a days worth of trade on a slow day.

[4] The advertising factor of the alone is worth $25 Mil.

[5] people / weak hands that don't understand this giving us cheap coins

Agreed.

Also these coins WILL NOT be sold on an exchange. They will be auctioned by the normal federal process. Do you think they are going to send the coins to MTGOX for sale? That would be funny but it will not be happening.

that would be classic as they wouldn't get their usd back for .... well ever

Topic: [Offically Announced] U.S. To Sell Silkroad's Bitcoins (Read 4300 times)