Now that bitcoin is called a currency by the government, can the sell btc's seized from raids?

Bitcoin is not called a currency by the government

And yes, seized things are regulary auctioned

The process is called asset forfeiture.  Yes the distict attorneys office will need to make a case that the coins were part of the proceedes of a criminal enterprise.  If/when successful the assets (Bitcoins, gold, yatchs, real estate, priceless works of art, it doesn't really matter) becomes the property of the US treasury.   The DOJ routinely auctions of billions and billions of dollars of forfeited property each year.

FBI often gets named but they have nothing to do with the process.  The DOJ handles assets forfeitures in the US and any assets become the property of the US treasury (and indirectly the people of the United States collectively) until sold.


If you are talking about the Silk Road specifically understand the timeline is usually measured in years.  It is an insanely slow process.  Often property is destroyed (i.e vehicles rusted out, won't start, etc) because the process takes so insanely long.  Obviously Bitcoins aren't affected by time but if you are expecting a sale tomorrow you will be waiting a long time.

They're waiting for the bitcoin worth $10,000. Profits!

what if the persons wallet was encrypted and use did not give them the password?
Can they not only seize if they confiscate the pc/hardware? what if the back up was placed on to the cloud and a transaction was made on another pc?

Of course they can, why wouldn't they?

I think there are certain legal proceedings though.

of course they can, why not? At least it will probably cost them more than they earn though, just because of the bureaucracy.

Really? I was told that btc is consided a currency by the us government.

No FinCEN stated that virtual currencies are regulated as a method of money transmission then never indicated they are considered a currency under US law.  In the Senate hearing it even came up "what is Bitcoin?  A commodity? A currency?  Something else?" and the experts did not provide an answer and FinCEN indicated that decision is outside of FinCEN's "scope".

Part of the issue is most US laws & regulations define currency as the money of the United States or a foreign nation which Bitcoin obviously is not.  Remember these laws were written when nobody considered the possibility of a currency that is neither the money of the United States, nor issued by any foreign government. 

So bitcoins is just bitcoin? There is no classification for it?