U.S. announces forfeiture of $28 million of bitcoins belonging to Silk Road

[bitpop]

Can anyone clarify for me:

How does the FBI have access to the bitcoins? They have unencrypted wallet.dat file or they  know the password?

I read all the time about how bitcoins can't be seized... so what happened in the case of DPR's bitcoins?

They arrested him with the laptop open and got the private keys. Pretty sure they compromised the server too. If he was smart, he would have used a brain wallet. One of the few recommended reasons.

[guybrushthreepwood]

Can anyone clarify for me:

How does the FBI have access to the bitcoins? They have unencrypted wallet.dat file or they  know the password?

I read all the time about how bitcoins can't be seized... so what happened in the case of DPR's bitcoins?

They arrested him with the laptop open and got the private keys. Pretty sure they compromised the server too. If he was smart, he would have used a brain wallet. One of the few recommended reasons.

He's an even bigger idiot then if this is what happened.

I think the NSA cracked his personal stash or got the passwords one way or another, not 100% though.

[Denton]

It's good that they're selling them. That means more bitcoins for new investor and users and less concentration of the money supply with early adopters.

[bitpop]

Can anyone clarify for me:

How does the FBI have access to the bitcoins? They have unencrypted wallet.dat file or they  know the password?

I read all the time about how bitcoins can't be seized... so what happened in the case of DPR's bitcoins?

They arrested him with the laptop open and got the private keys. Pretty sure they compromised the server too. If he was smart, he would have used a brain wallet. One of the few recommended reasons.

He's an even bigger idiot then if this is what happened.

I think the NSA cracked his personal stash or got the passwords one way or another, not 100% though.

Yeah he was in a library chillin on his laptop. He obviously had delusions of grandeur and other mental problems.

[guybrushthreepwood]

Can anyone clarify for me:

How does the FBI have access to the bitcoins? They have unencrypted wallet.dat file or they  know the password?

I read all the time about how bitcoins can't be seized... so what happened in the case of DPR's bitcoins?

They arrested him with the laptop open and got the private keys. Pretty sure they compromised the server too. If he was smart, he would have used a brain wallet. One of the few recommended reasons.

He's an even bigger idiot then if this is what happened.

I think the NSA cracked his personal stash or got the passwords one way or another, not 100% though.

Yeah he was in a library chillin on his laptop. He obviously had delusions of grandeur and other mental problems.

The kind of money he was earning must've gone to his head. I bet being DPR would’ve been a bit of a rush.

[hilariousandco]

Can anyone clarify for me:

How does the FBI have access to the bitcoins? They have unencrypted wallet.dat file or they  know the password?

I read all the time about how bitcoins can't be seized... so what happened in the case of DPR's bitcoins?

They arrested him with the laptop open and got the private keys. Pretty sure they compromised the server too. If he was smart, he would have used a brain wallet. One of the few recommended reasons.

He's an even bigger idiot then if this is what happened.

I think the NSA cracked his personal stash or got the passwords one way or another, not 100% though.

Yeah he was in a library chillin on his laptop. He obviously had delusions of grandeur and other mental problems.

The kind of money he was earning must've gone to his head. I bet being DPR would’ve been a bit of a rush.

That kinda money obviously did go to his head when he's hiring people to whack users who become a possible threat to his business empire. And I think a bit of a rush would be an understatement. The levels of smug he must've achieved would be staggering. Not so much when he got caught though  .

[bitpop]

Can anyone clarify for me:

How does the FBI have access to the bitcoins? They have unencrypted wallet.dat file or they  know the password?

I read all the time about how bitcoins can't be seized... so what happened in the case of DPR's bitcoins?

They arrested him with the laptop open and got the private keys. Pretty sure they compromised the server too. If he was smart, he would have used a brain wallet. One of the few recommended reasons.

He's an even bigger idiot then if this is what happened.

I think the NSA cracked his personal stash or got the passwords one way or another, not 100% though.

Yeah he was in a library chillin on his laptop. He obviously had delusions of grandeur and other mental problems.

The kind of money he was earning must've gone to his head. I bet being DPR would’ve been a bit of a rush.

That kinda money obviously did go to his head when he's hiring people to whack users who become a possible threat to his business empire. And I think a bit of a rush would be an understatement. The levels of smug he must've achieved would be staggering. Not so much when he got caught though  .

Wrong causation vs correlation. He built silk road because he was crazy, the silk road didn't make him crazy.

[Yogafan00000]

I bet they destroy them.

Selling them implies USG views crypto-currencies as a legitimate, legal commodity/currency unit.

[qfdev]

I bet they destroy them.

They'll have a lot of hard drives to destroy to wipe out the blockchain

[Yogafan00000]

I bet they destroy them.

They'll have a lot of hard drives to destroy to wipe out the blockchain

You misunderstand.  I did not mean all bitcoins, just the ones they are in possession of from the silk road bust.

They probably cannot access them due to encryption or passwords or whatever, on the media they possess and so they announce they are forfeiting the coins, as if its a choice they made.

Like a thief who cannot break into a safe, "forfeiting" the contents.  The thief just dumps the whole safe into the ocean.

[LouReed]

I bet they destroy them.

They'll have a lot of hard drives to destroy to wipe out the blockchain

You misunderstand.  I did not mean all bitcoins, just the ones they are in possession of from the silk road bust.

They probably cannot access them due to encryption or passwords or whatever, on the media they possess and so they announce they are forfeiting the coins, as if its a choice they made.

Like a thief who cannot break into a safe, "forfeiting" the contents.  The thief just dumps the whole safe into the ocean.

Nope, they have them. They are right here:

https://blockchain.info/address/1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX

And here is DPR's seized coins that he is taking the government to court for to try and get back:

https://blockchain.info/address/1FfmbHfnpaZjKFvyi1okTjJJusN455paPH

And here is his other personal wallet that they have not gotten to yet:

https://blockchain.info/address/1933phfhK3ZgFQNLGSDXvqCn32k2buXY8a

[davida]

Someone please explain how the US think they can seize and keep funds of people all over the world.

I mean some people just used silk road to sell legal products and never committed ANY crimes (few, but there was some).  People who have never visited and have NO affiliation to the USA.

Imagine you lived in Amsterdam for example...  And you had a cafe, you decided to sell your weed  only to people within the same country.  All can be done completely legally.

Yet the US government feel they have the right to steal this money and auction it to the highest bidder. 

Ask yourself who the real criminals are!

I just hope someone in this position takes the FBI to court and wins damages.

[Kungfucheez]

Someone please explain how the US think they can seize and keep funds of people all over the world.

I mean some people just used silk road to sell legal products and never committed ANY crimes (few, but there was some).  People who have never visited and have NO affiliation to the USA.

Imagine you lived in Amsterdam for example...  And you had a cafe, you decided to sell your weed  only to people within the same country.  All can be done completely legally.

Yet the US government feel they have the right to steal this money and auction it to the highest bidder. 

Ask yourself who the real criminals are!

I just hope someone in this position takes the FBI to court and wins damages.

Well the owner was caught in San Francisco, he should of stayed away from the States if he didn't want the FBI to catch him

[Kazimir]

Well the owner was caught in San Francisco, he should of stayed away from the States if he didn't want the FBI to catch him

What does a 100% legal weed seller in Amsterdam have to do with any criminial activities of a site owner?

Yes the weed seller's money is now taken by the FBI. Based on what crime (committed by the weed seller) exactly?

[Kungfucheez]

Well the owner was caught in San Francisco, he should of stayed away from the States if he didn't want the FBI to catch him

What does a 100% legal weed seller in Amsterdam have to do with any criminial activities of a site owner?

Yes the weed seller's money is now taken by the FBI. Based on what crime (committed by the weed seller) exactly?

It has nothing to with a legal weed seller in Amsterdam, but that's Amsterdam, not the rest of the world. He allowed access for crimes to be committed between international borders. That's pretty fucking serious. Doesn't matter if someone bought weed from Silk Road in Amsterdam, someone else from another country could of sent it, where it was illegal.

Plus, the site allowed a how bunch of other incredibly illegal shit, are we really going to argue this?

[Kazimir]

It has nothing to with a legal weed seller in Amsterdam, but that's Amsterdam, not the rest of the world. He allowed access for crimes to be committed between international borders. That's pretty fucking serious. Doesn't matter if someone bought weed from Silk Road in Amsterdam, someone else from another country could of sent it, where it was illegal.

Of course it matters. If someone from Iran can see homosexual pictures on a random website, which is illegal there, according to Iran that's also pretty fucking serious. Should the rest of the world care? No.

For a legal weed seller in Amsterdam, it should be completely irrelevant what the law from Iran or U.S. has to say about his activities.

Plus, the site allowed a how bunch of other incredibly illegal shit, are we really going to argue this?

How is that relevant to confiscating money from people who didn't have jack shit to do with such activities?

People are posing illegal shit on Facebook as well. And you can find tonds of illegal shit with Google. Are all Facebook and Google users now criminals whose money should be confiscated?

[e521]

US will keep the bitcoins seized and probably it will distribute them to spies across the world :-)
What's the news here?

[davida]

It has nothing to with a legal weed seller in Amsterdam, but that's Amsterdam, not the rest of the world. He allowed access for crimes to be committed between international borders. That's pretty fucking serious. Doesn't matter if someone bought weed from Silk Road in Amsterdam, someone else from another country could of sent it, where it was illegal.

Of course it matters. If someone from Iran can see homosexual pictures on a random website, which is illegal there, according to Iran that's also pretty fucking serious. Should the rest of the world care? No.

For a legal weed seller in Amsterdam, it should be completely irrelevant what the law from Iran or U.S. has to say about his activities.

Plus, the site allowed a how bunch of other incredibly illegal shit, are we really going to argue this?

How is that relevant to confiscating money from people who didn't have jack shit to do with such activities?

People are posing illegal shit on Facebook as well. And you can find tonds of illegal shit with Google. Are all Facebook and Google users now criminals whose money should be confiscated?

Exactly....  It's just like saying that the US has the right to confiscate all funds in every HSBC bank account worldwide simply because HSBC have been laundering money for the Mexican drug cartels.

[Kungfucheez]

It has nothing to with a legal weed seller in Amsterdam, but that's Amsterdam, not the rest of the world. He allowed access for crimes to be committed between international borders. That's pretty fucking serious. Doesn't matter if someone bought weed from Silk Road in Amsterdam, someone else from another country could of sent it, where it was illegal.

Of course it matters. If someone from Iran can see homosexual pictures on a random website, which is illegal there, according to Iran that's also pretty fucking serious. Should the rest of the world care? No.

For a legal weed seller in Amsterdam, it should be completely irrelevant what the law from Iran or U.S. has to say about his activities.

Plus, the site allowed a how bunch of other incredibly illegal shit, are we really going to argue this?

How is that relevant to confiscating money from people who didn't have jack shit to do with such activities?

People are posing illegal shit on Facebook as well. And you can find tonds of illegal shit with Google. Are all Facebook and Google users now criminals whose money should be confiscated?

Because other sites like Google and Facebook aren't a platform for which criminals can exchange illegal goods and shop for illegal things and buy them.

Plus, no offense, everyone who used Silk Road knew the consequences of how shady the shit was when the site first came on-line, there wasn't any allusion to the fact that a transaction might not even make it to the seller and might be seized. Just because he's the owner of the wesbite doesn't mean he can claim willful negligence for the things that happen on his site.

[bitpop]

The fbi should just buy spices with the money