FBI has to follow bitcoin rules! How long will that last?

[User705]

So FBI "seized" BTC from SR.  And by "seized" they had to get their own address and then do a correct signed transaction to send btc to that address.  Oh and DPR supposedly has 600k more coins.  They are fully visible but can't be seized.  It must feel odd not to be able to just take.  It's likely FUD but still I wonder how long till governments just say fuck it and simply outlaw bitcoins. 

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[Phinnaeus Gage]

So FBI "seized" BTC from SR.  And by "seized" they had to get their own address and then do a correct signed transaction to send btc to that address.  Oh and DPR supposedly has 600k more coins.  They are fully visible but can't be seized.  It must feel odd not to be able to just take.  It's likely FUD but still I wonder how long till governments just say fuck it and simply outlaw bitcoins. 

Good news! Bitcon won't be outlaw prior to DPR's trial.

[User705]

Nice at least a few more years then.

[Phinnaeus Gage]

Nice at least a few more years then.

Are we forgetting about Mt Gox's account that is also locked up by the USG? The more they lock up and would eventually want in their coffer, the longer Bitcoin will stay online.

[TheButterZone]

Is 1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX really an address the FBI generated securely and randomly themselves? Or did they just put an unencrypted private key of the Silk Road tumbler onto blockchain.info wallet, a private key that could be stored elsewhere and spent right out from other them?

[Wipeout2097]

How come the FBI can't get the cash?? 

[crazynoggin]

How come the FBI can't get the cash?? 

According to GTA 5, government institutions torture people to get information to get money so this must be true.

[ixne]

A great article by Wired on how the FBI might deal (or not deal) with their seized bitcoins:

http://www.wired.com/wiredenterprise/2013/10/silk-road-bust/

Very interesting problem for them: bitcoin has already been legally declared a form of currency, but they have no government-sanctioned method of dealing with bitcoin currency.  I'm guessing it either gets sold at auction or they tear up the private key.

[Birdy]

Oh and DPR supposedly has 600k more coins.  They are fully visible but can't be seized.

This is news to me. They are fully visible? Any source of that information?
Afaik the amount in his private pockets isn't known, only estimated (and most likely way less than 600k).

[dserrano5]

This is news to me. They are fully visible? Any source of that information?

Yes, page 15 mentions 614,305 BTC in commissions.

Afaik the amount in his private pockets isn't known, only estimated (and most likely way less than 600k).

Of course it's less, DPR had some expenses to cover after all, and some of those were paid when BTC was worth much less than today.

[cbhelp]

A great article by Wired on how the FBI might deal (or not deal) with their seized bitcoins:

http://www.wired.com/wiredenterprise/2013/10/silk-road-bust/

Very interesting problem for them: bitcoin has already been legally declared a form of currency, but they have no government-sanctioned method of dealing with bitcoin currency.  I'm guessing it either gets sold at auction or they tear up the private key.

The governement loves money, 0% chance they tear up the private key

[joesmoe2012]

This is news to me. They are fully visible? Any source of that information?

Yes, page 15 mentions 614,305 BTC in commissions.

Afaik the amount in his private pockets isn't known, only estimated (and most likely way less than 600k).

Of course it's less, DPR had some expenses to cover after all, and some of those were paid when BTC was worth much less than today.

They don't see that all in one account though, but rather they calculate it based upon sales recovered from the SQL DB.

[shuttleclock]

So I heard that 600K more Bitcoin doesn't belong to DPR, but it belongs to TSR members..

[providers36]

Looking fwd to see how this will play out there are few scenarious how fby can destabilize btc...

[FanEagle]

I really wanna see what's going to happen.

[Mitchell]

So I heard that 600K more Bitcoin doesn't belong to DPR, but it belongs to TSR members..

Other way around.

[User705]

Oh and DPR supposedly has 600k more coins.  They are fully visible but can't be seized.

This is news to me. They are fully visible? Any source of that information?
Afaik the amount in his private pockets isn't known, only estimated (and most likely way less than 600k).

I see.  I was under the impression that had his wallet files.  Wouldn't that mean they have the public addresses or no?

[marcus_of_augustus]

Nice at least a few more years then.

Are we forgetting about Mt Gox's account that is also locked up by the USG? The more they lock up and would eventually want in their coffer, the longer Bitcoin will stay online.

The Gox seizures were a US dollar Wells Fargo account ($2.1 million) and more recently a Dwolla account ($2.9 million), totalling $5 million, held by a subsidary called Mutum Sigillum LLC. Of course, "seizing" fiat digital bank accounts is a misnomer because the funds do not have an objective existence, e.g. like a private key, but are merely database entries that everyone believes have value so they do, until someone sets a flag against the database entry that signifies "seized".

[Luckybit]

Nice at least a few more years then.

Are we forgetting about Mt Gox's account that is also locked up by the USG? The more they lock up and would eventually want in their coffer, the longer Bitcoin will stay online.

The Gox seizures were a US dollar Wells Fargo account ($2.1 million) and more recently a Dwolla account ($2.9 million), totalling $5 million, held by a subsidary called Mutum Sigillum LLC. Of course, "seizing" fiat digital bank accounts is a misnomer because the funds do not have an objective existence, e.g. like a private key, but are merely database entries that everyone believes have value so they do, until someone sets a flag against the database entry that signifies "seized".

Just like tainted coins.

[MicroGuy]

I wonder what will happen to the coins (aka balances) belonging to people that were using the site for legal purchases?