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Topic: Question on Governemnt's Sales of Seized Bitcoins - page 2. (Read 187 times)

sr. member
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Merit: 280
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As franky1 had stated already, since it's an auction sales, they make it available for everyone to show interest and make offer and the highest bidders go with the offer deal, but to me isn't this inappropriate as well, for them to seize some worth assets of currency from some set of people and yet sell them out to others, how are we sure they aren't making the offer for themselves, why not selling into the bitcoin network been distributed to buyers over the network across, then another thing to ask is what they use these funds for after the auction, back to their pause or back to the society,  are there past records to serve as evidence on the appropriate utilization of these funds.

This auction goes the same for every seized item by the government which may be property or fiat money from laundering or whatever so its bitcoin they seized is sold too so the government can use it for funding themselves on anything you may not like it but that's what the law says and if there is any inside job going in that auction then the dirt will go to the government which they may not want it so I assume the auctions are fair but laws but ethically we can't speak anything.
hero member
Activity: 826
Merit: 583
The highest bidder will win the auction. the process is certain as with the auction of other confiscated goods which can be in the form of physical assets. house or car.
not everyone can participate in such an auction, one may have to have a particular membership. and about the price, usually the committee will determine the initial price first, I don't know where to start. but to make it more attractive, of course, it must be below the market price. and competition from bidders that will determine price increases.
hero member
Activity: 1484
Merit: 597
Bitcoin makes the world go 🔃
Between 2011 - 2023, the U.S. has auctioned of some bitcoin holdings said to be worth $366.5. million. Other countries that have seized and sold off bitcoins holding are Australia, Germany, Netherlands. I want to know, when the government of a country who have seized bitcoins decide to auction it off, do they auction the bitcoin based on the price as at the time it was seized or at the current market price which is the time it is being auctioned off?

It’s not a sales but rather an aucion. The price will be dictated by the bidders and possibly close the current price or a little bit higher since we are talking about bulk purchase here on a same price which you can do on exchange with thinner volume.

The government has no legal obligation to sell it on the price when it was seized since they need to maximize profit from it. Many institutional investors accumulate their Bitcoin holding from this kind of huge haul auction from government and miner that’s why the price is not heavily impacted despite some whale surprsingly manage to stash huge chunk of Bitcoin which in reality should pump the price hard if they purchase on the open market.
sr. member
Activity: 812
Merit: 436
Between 2011 - 2023, the U.S. has auctioned of some bitcoin holdings said to be worth $366.5. million. Other countries that have seized and sold off bitcoins holding are Australia, Germany, Netherlands. I want to know, when the government of a country who have seized bitcoins decide to auction it off, do they auction the bitcoin based on the price as at the time it was seized or at the current market price which is the time it is being auctioned off?

As franky1 had stated already, since it's an auction sales, they make it available for everyone to show interest and make offer and the highest bidders go with the offer deal, but to me isn't this inappropriate as well, for them to seize some worth assets of currency from some set of people and yet sell them out to others, how are we sure they aren't making the offer for themselves, why not selling into the bitcoin network been distributed to buyers over the network across, then another thing to ask is what they use these funds for after the auction, back to their pause or back to the society,  are there past records to serve as evidence on the appropriate utilization of these funds.
full member
Activity: 462
Merit: 117
These Bitcoins auctioned are mostly seized by the government as a result of illicit activities of the owners as at the time of seizures. Most of them are drug related, money laundering, trafficking and lots more. While the auctioning is done, the government can generate revenue from the auctioned Bitcoin to aid in other governmental activities. These Bitcoins are auctioned outside market price possible higher or lower but I believe the binding price wouldn't settle for a lower price.

One thing about this auction is that the guests are all invited and anyone you see there are strictly on invitation. So therefore it is not anyhow thing to start with as the government is fully involved in the process.
legendary
Activity: 4424
Merit: 4794
do they auction the bitcoin based on the price as at the time it was seized or at the current market price which is the time it is being auctioned off?

its an AUCTION
so certified entrants that are allowed to enter the auction make a bid. highest bid wins
so its not market rate, its bid rate of whomever turns up and makes best offer

usually the bidders make offers below current rate.. so the receiver gets a good deal compared to current market rate. but its usually a fair amount to outpace the competing bids. so maybe not much discount
sr. member
Activity: 728
Merit: 444
If you visit the US department of Justice website, you will see a lot of press releases about the US seizing bitcoins. The US government has more bitcoins in her possession than any other any nation in the world as state in a Forbes article. According to this Forbes, the US government is sitting on a stash of 207,189 bitcoin, worth $5 billion, by far the largest such state-owned hoard.

Between 2011 - 2023, the U.S. has auctioned of some bitcoin holdings said to be worth $366.5. million. Other countries that have seized and sold off bitcoins holding are Australia, Germany, Netherlands. I want to know, when the government of a country who have seized bitcoins decide to auction it off, do they auction the bitcoin based on the price as at the time it was seized or at the current market price which is the time it is being auctioned off?

Cited Sources
- https://www.forbes.com/sites/michaeldelcastillo/2023/06/16/us-government-owns-way-more-bitcoin-than-any-other-countryso-why-arent-they-selling-it/?sh=33e7184e1f32
- https://search.justice.gov/search?utf8=%E2%9C%93&affiliate=justice&query=U.S.+Seizes+Virtual+Currencies
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