Thoughts on FBI dumping Silkroad BTC

[kaysersoze]

http://pando.com/2014/01/02/with-130m-of-bitcoin-wealth-and-plans-to-sell-the-fbi-could-rattle-the-virtual-currency-cage/

Being a government entity you can bet on them trying everything in their power to crash the price when they unload..if for nothing else for fun of it

[Merch]

Good. More cheap coins for me.
There is no crashing the btc.

[EvilPanda]

I don't believe they have access to the money so what's to discuss.

[black_swan]

I don't believe they have access to the money so what's to discuss.

This. Stop the FUD here please

[mufa23]

Good. More cheap coins for me.
There is no crashing the btc.

This!

If they dump all at once, I'm going to make a small fortune buying up cheap coins.

[kaysersoze]

I agree with all of you obv best situation to buy cause has zero correlation with actual progress of btc but I just bought a lot and read this... haha now what do I do?  sell and wait for it too crash to buy again

[quone17]

Nah they won't dump all at once.  They want to get as much money as possible too.  Plus, all legal proceedings go so slowly, I bet it will be months or another year before they even start selling.  They need the BTC for now for evidence against SR.

[gog1]

I think they'll do it by way of an auction rather than dumping on the exchanges - otherwise, it implies that they recognize the legal status of those exchanges.

[leshow]

so you htink the FBI is going to make an account on Mt Gox or Bitstamp and sell their coins... seriously?

First of all they can't do anything until the trial is over. Secondly if they are going to sell them it isn't going to be on a japanese exchange that you can't withdraw any USD out of, or on an exchange whose bank is in slovenia. use your critical thinking skills...

[beetcoin]

if they cash out, people would know that it was just 1 single source that was likely to offload its holdings.. probably wouldn't hurt the price that much.

[2tights]

I watch the values from preev.com (combined) or mtgox.

They keep going up, up up...

I would love to see all those silk road bitcoin dumped so we could all buy cheap btc before it rebounds.

[allthingsluxury]

I doubt they will be selling the coins anytime soon. At least until the trial is over.

[Altoidnerd]

http://pando.com/2014/01/02/with-130m-of-bitcoin-wealth-and-plans-to-sell-the-fbi-could-rattle-the-virtual-currency-cage/

Being a government entity you can bet on them trying everything in their power to crash the price when they unload..if for nothing else for fun of it

Kinda wondering how the FBI even got to the coins.  Encrypted wallet?  Ya know?

[Rannasha]

http://pando.com/2014/01/02/with-130m-of-bitcoin-wealth-and-plans-to-sell-the-fbi-could-rattle-the-virtual-currency-cage/

Being a government entity you can bet on them trying everything in their power to crash the price when they unload..if for nothing else for fun of it

Kinda wondering how the FBI even got to the coins.  Encrypted wallet?  Ya know?

How they got access to the coins will probably never be publicly known. Weak password, old unencrypted wallet-backup, deal with DPR, etc... There are various options available.

Anyway, the coins won't be sold until after the trial is over (including possible appeals). At that point, I guess they'll be auctioned like typical confiscated items. And I seriously doubt the buyer will just dump them on an exchange. In fact, for wealthy buyers that want to play by the rules as much as possible, this batch of coins will be very attractive. For them, buying the coins at a government-sanctioned auction is much better than wiring large amounts of money to an exchange in Japan, Slovenia or Bulgaria to buy coins.

[FTWbitcoinFTW]

I'm sur, 15 agency, at least, already asked to keep those coins for futur LEO

No worries for 1 or 2 years

[MAbtc]

I don't believe they have access to the money so what's to discuss.

This. Stop the FUD here please

Huh?

[ElectricMucus]

Don't get your hopes up. The FBI probably will auction off their Bitcoin stash to the highest bidder, this way they have a good chance of having a decent premium on the market price.
All those prominent high worth Bitcoin advocates will stand in line to get a piece off the pie.

[chrsjrcj]

Do they even have the private keys, or is the wallet encrypted? I'm willing to bet they can't even touch the coins, and anyone winning the bid on that auction will be stuck with a locked wallet.

[ElectricMucus]

Do they even have the private keys, or is the wallet encrypted? I'm willing to bet they can't even touch the coins, and anyone winning the bid on that auction will be stuck with a locked wallet.

They moved the coins to a new wallet which requires control over the original Bitcoin wallet. So yes they do have the private keys.

[JimboToronto]

How they got access to the coins will probably never be publicly known. Weak password, old unencrypted wallet-backup, deal with DPR, etc... There are various options available.

Scopolamine? Waterboarding at Guantanamo Bay?