FBI Seizes DPR's personal coins! 144,000 coins!

[Phinnaeus Gage]

When's the last time the FBI made a $50M bust?

[LouReed]

When's the last time the FBI made a $50M bust?

Exactly! And you barely here about it in the news! None of the alphabet soups even have anything listed anywhere on their websites! I think I might almost be ready to jump aboard the tinfoil hat ship at this point!

[Shallow]

It's a fail on his part and now that amount could crash the price.

[Phinnaeus Gage]

It's a fail on his part and now that amount could crash the price.

Actually, by having the coins locked up for who knows how long, it increases the exchange rate. When Bitcoin becomes mainstream, it shouldn't have that much of an effect when they're finally liquidated.

[Taras]

I bet the coins will be auctioned off. One day. This could be a month or a decade from now.

[DobZombie]

God DPR is a fucking moron. don't get me wrong I'm all for freedom, but bloody hell!

amateur mistake lead to his capture.

really amateur way of letting all his coins get captured.

why didn't he just hide 10,000 in a dozen random places. God I know if I had 20 million I'd hide it in at least 5 different spots.

I just hope that all the coins are sold off in one go.  plummet the price so I can clean up

[Pente]

I suspect selling this many coins on one of the markets would drop btc prices by about 50%. Hopefully, they will auction them all off to someone who will just sit on them. The other possibility (and not sure if this is good or bad - really depends on point of view) is that they will use the btc to infiltrate other TOR based drug markets.

[Inedible]

When's the last time the FBI made a $50M bust?

What else was seized?

[Inedible]

I suspect selling this many coins on one of the markets would drop btc prices by about 50%. Hopefully, they will auction them all off to someone who will just sit on them. The other possibility (and not sure if this is good or bad - really depends on point of view) is that they will use the btc to infiltrate other TOR based drug markets.

And the winning bid for this auction is to Mr. FBI for $12! Congratulations.

[jabetizo]

The fact that the transfer was made so long after his arrest probably means it took them some time to crack his wallet password. If that's true he probably used a pretty strong but not strong enough for the FBI password...

[rapidfire187]

I wouldnt be suprised if the Cartels didn't put some muscle in getting those coins back. I think we have to think about how powerful the Sinaloa Cartel is. Chances are those coins get back to them. I feel bad for this guy I truly do. Could you imagine what could happen to someone or their family for that matter fucking over the Cartel? I hope this guy lives a happy life in WPP for the rest of his life. The alternatives are not good.



http://en.wikipedia.org/wiki/Sinaloa_Cartel

[dserrano5]

God DPR is a fucking moron. don't get me wrong I'm all for freedom, but bloody hell!

amateur mistake lead to his capture.

really amateur way of letting all his coins get captured.

why didn't he just hide 10,000 in a dozen random places. God I know if I had 20 million I'd hide it in at least 5 different spots.

We don't know whether DPR's fortune is actually e.g. 300k hidden in 2 different wallets, and the FBI could have seized only one of them.

[rpietila]

It is saddening to see that people's lives can be destroyed over something as trivial as money. I mean, in the static world of the past, money was something you needed to work for, and still getting wealthy took a long time and not everyone made it.

Hopefully everyone concerned will take heed to the most important thing: buy bitcoins yourself and after 2 years no need to work evermore. No more drug lords, no more FBI agents.

[Timo Y]

That was just his "FBI appeasement" wallet that he purposefully stored in his home and secured with a weak password.

The other 450,000 coins are still safe in his brain wallet.  But now they are plausibly deniable. 

[Inedible]

Proof or it didn't happen:
http://www.reddit.com/r/SilkroadUNcensored/comments/1p0ogt/

For this to be true, wouldn't Forbes need to have not verified their sources/information (granted this does happen)?

If that's happened how did the court documents get onto the court servers?

[Inedible]

The courts claim to know nothing about it. The reddit story sounds to fscked to be true but so far nothings come up that even looks remotely like proof in that thread. The way the news of this coin movement spread here got me suspicious so I've been doing a bit of digging and come up with nothing solid that backs it up yet, just repeats of anonymous statements. TBH, I'd rather the FBI had 0.5% of all coins than a group of scammers but waiting for something solid to come out before believing anything.

This is copypasta from the other thread:

================================


I don't know if this is sufficient evidence but it's all I could do with Google. Here's the FBI website:

http://www.fbi.gov/newyork/

http://www.fbi.gov/newyork/press-releases/2013/manhattan-u.s.-attorney-announces-seizure-of-additional-28-million-worth-of-bitcoins-belonging-to-ross-william-ulbricht-alleged-owner-and-operator-of-silk-road-website


I know the two links are to the same source but the rest of the news articles and Wikipedia pages pointed to the same places so I figured it was a good start.

I can't confirm the story wasn't planted or that the website hasn't been hacked though so you'll have to take my word for it that I'm not involved.

[Inedible]

Thanks, that puts my doubts to rest.

It seems you believe one persuasion over the other. IMHO, you should be equally critical of both sides

[Inedible]

I'm still sceptical about the whole SR episode, how long the FBI was involved, the legality of their involvement and many other aspects but those pages confirm the seizure beyond any reasonable doubt and cast a lot of doubt on the other claims in the reddit thread. I just hope the FBI wait until bitcoin's legitimacy as a currency is clarified before doing anything with them and hopefully use them to improve efficiency rather than auctioning them off as seized goods.

It shouldn't really matter how long the FBI was involved even if it was from day 1.

SR is an illegal operation so they went after them. Whether drugs should be illegal or not is a different matter.

[oakpacific]

Sell them in one go won't do them any good, everyone puts their wallets on watch and will be alerted when they come, besides, other than the prosecuted Mt.Gox, no exchange in the world has such fiat reserve to pay them.

I suspect they will just leave the stash there, and dip into it whenever they are short of money.

[Inedible]

Sell them in one go won't do them any good, everyone puts their wallets on watch and will be alerted when they come, besides, other than the prosecuted Mt.Gox, no exchange in the world has such fiat reserve to pay them.

I suspect they will just leave the stash there, and dip into it whenever they are short of money.

They're plenty well funded. $25M is less than a third of a percent of their annual budget.