Silkroad closed down. Owner Arrested.

[lucas.sev]

Bitcoin economy now consists of speculation and machines to generate more bitcoin. Discuss.


http://krebsonsecurity.com/wp-content/uploads/2013/10/UlbrichtCriminalComplaint.pdf


http://www.reuters.com/article/2013/10/02/crime-silkroad-raid-idUSL1N0HS12C20131002


EDIT:

Personal comment/opinion: the only reason to go through the hassle of paying by bitcoin as opposed to paying by plastic just disappeared.

[gwoplock]

no effect 

[Zaih]

She'll be right. We'll be fine

[Birdy]

no effect  

I think it will have an effect, there are some people who believe Silk road is a good portion of the Bitcoin market and they will probably sell.
Also those that want to profit from that fall will also sell.
So I guess we will see a selloff for a short time, but no crazy crash.

[pacojones]

"All told, the site has generated sales revenue totaling over 9.5 million Bitcoins and collected commissions from these sales totaling over 600,000 Bitcoins. Although the value of Bitcoins has varied significantly during the site's lifetime, these figures are roughly equivalent today to approximately $1.2 billion in sales and approximately $80 million in commissions."

Does this mean that 600,000 BTC (give or take) is off the "market"?  Holy crap - if those coins are gone, the value could skyrocket!

[ArticMine]

The FBI has also seized approximately $3.6m (£2,2m) worth of bitcoins - a virtual currency.

http://www.bbc.co.uk/news/technology-24373759

The question then becomes. Will the US Government sell the BTC to pay its debts or hold?

[jehst]

Who's to say that there won't be another SR? This should serve as a lesson. Centralized systems, even if clandestine, are easily brought down.

[XXthetimeisnowXX]

no effect  

I think it will have an effect, there are some people who believe Silk road is a good portion of the Bitcoin market and they will probably sell.
Also those that want to profit from that fall will also sell.
So I guess we will see a selloff for a short time, but no crazy crash.

no we will see a crazy crash. if you dont sell now you will be well under 100 by tomorrow. mock my words. dont beleave me thats fine but do your self a favor and sell what you can. you can always buy back in tomorrow or the next when its the same price. BUT IT WONT BE for gods sakes man this is the sell sell sell time. sub 100 in 24-48 hrs garunteeeed

[BayAreaCoins]

Just called the jail, he has been bailed out or is at least no longer there.

By he I mean Ross William Ulbricht

Call and check if you want too +1 (415) 553-1430

[Tzupy]

The FBI has also seized approximately $3.6m (£2,2m) worth of bitcoins - a virtual currency.

http://www.bbc.co.uk/news/technology-24373759

The question then becomes. Will the US Government sell the BTC to pay its debts or hold?

That would be a nice BTC injection into the market. While it would drive price down a lot, it could increase volumes on the long term.

[Walsoraj]

My prediction (i am never wrong): extreme volatility for 1-2 weeks, then mega-ultra-turbo crash, then bitcoin along with the entire crypto scene dies.

[BayAreaCoins]

It would be funny if the Government had Goldman S. crew sitting on the Bid buying it all the way down.


Dirty bastards... They would do that too.

I am wondering how he is NOT in jail?? Should the vendors/users be concerned... only time will tell.

[Coinseeker]

This is a big deal!  Isn't this the largest contributor to Bitcoin transactions?  I'd expect a huge selloff and rightfully so.  Bitcoin just got crippled.  I'm not saying permanently but this is a BFD.    This affects the actual value of Bitcoin based on useablity and number of transactions.  Eager to see how this plays out.

[Chronikka]

The 600,000 BTC number is the total revenue from commissions SR ever made. It says the FBI seized BTC worth $3.6 Million US. Thats about ~25,500 BTC. Still a very significant amount of coin. In all likelihood they will destroy it. Or refuse to do anything with it since the people who make those decisions probably won't comprehend what bitcoin is or how to use it to benefit themselves.

[Coinseeker]

The 600,000 BTC number is the total revenue from commissions SR ever made. It says the FBI seized BTC worth $3.6 Million US. Thats about ~25,500 BTC. Still a very significant amount of coin. In all likelihood they will destroy it. Or refuse to do anything with it since the people who make those decisions probably won't comprehend what bitcoin is or how to use it to benefit themselves.

Or they could dump it all to raise funds and crash the BTC market at the same time.  That's alot of BTC in the hands of the Feds.  That's the equivalent of a crypto nuclear bomb.  Question is will they use it.   

[Inedible]

If they sell it and cause a flash crash, there are plenty in the wings waiting to pick them up.

This is undoubtedly going to cause a significant drop in price. The question is for how deep and how long before it rises back up again.

[sublime5447]

Price will crash in a ditch.. anyone can see that. Silkroad made bitcoin and will break it in the short term 115 on btc-e and heading down. If you are in btc get out and buy back in at the bottom.

I wonder what information they will get? If there will be a string of arrest of vendors.

[Chronikka]

The 600,000 BTC number is the total revenue from commissions SR ever made. It says the FBI seized BTC worth $3.6 Million US. Thats about ~25,500 BTC. Still a very significant amount of coin. In all likelihood they will destroy it. Or refuse to do anything with it since the people who make those decisions probably won't comprehend what bitcoin is or how to use it to benefit themselves.

Or they could dump it all to raise funds and crash the BTC market at the same time.  That's alot of BTC in the hands of the Feds.  That's the equivalent of a crypto nuclear bomb.  Question is will they use it.   

To be honest I hope they dump it. The Bitcoin community will survive that. I would rather the coins be bought up by bitcoin supporters during a crash than have them destroyed. And besides if anything this is going to draw MORE attention to bitcoin as more people find out that they can do illegitimate business with bitcoin.

[Magazine]

It's like the Black Friday of poker in America 

[Minor Miner]

read the indictment.  interesting.

http://nation.time.com/2013/10/02/alleged-silk-road-proprietor-ross-william-ulbricht-arrested-3-6m-in-bitcoin-seized/