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

[Tomatocage]

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

[e521]

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

[Bitcoin Oz]

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

[BurtW]

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.

[BurtW]

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.

[grumpy619]

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

[scintill]

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.

[jubalix]

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!    

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!    

they don't have the keys

[BurtW]

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!    

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!    

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.

[bitpop]

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.

[grumpy619]

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?

[BurtW]

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.

[TippingPoint]

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

[PrintMule]

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 ?

[jongameson]

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.

[kik1977]

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.