[Offically Announced] U.S. To Sell Silkroad's Bitcoins

[tk808]

I think this will hit the media like a wild fire. After the big sell offs, we will see bitcoin emerge stronger then ever with a huge spike; eventually, settling down around the 1000-$1500 mark.


Source: http://www.coindesk.com/us-government-announces-sell-25m-worth-silk-road-bitcoins/

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[jubalix]

this is the best news ever

[1] You have a law enforcement agency of the US recognising that not only the value in bit-coins, but showing it is fully legal to sell them for FIAT. You probably couldn't ask for a better endorsement. (I wonder if the need a money transmitters licence to do this?)

[2] They are going to have to auction them of for the best price, I think the bids will really go up.

[3] the $25 mill / 26K of coins is not that much given the volume of BTC traded a day ~ about a days worth of trade on a slow day.

[4] The advertising factor of the alone is worth $25 Mil.

[5] people / weak hands that don't understand this giving us cheap coins

[thms]

The coins will just change hands. It belonged to Silk Road now it will belong to someone else.

[Chancellor]

[1] You have a law enforcement agency of the US recognising the not only the value in bit-coins, but showing it is fully legal to sell them for FIAT. You probably couldn't ask for a better endorsement. (I wonder if the need a money transmitters licence to do this?)

[2] They are going to have to auction them of for the best price, I think the bids will really go up.

[3] the $25 mill / 26K of coins is not that much given the volume of BTC traded a day ~ about a days worth of trade on a slow day.

[4] The advertising factor of the alone is worth $25 Mil.

What can I see more? +1 

[BigJohn]

Soo.... hold on now. The activities of the Silk Road were so nefarious that they just had to get shut down. We can't have evil people giving money to some DPR kid. But hey, it's fine if the government profits off of those same nefarious acts? So it's wrong for people to profit off of illegal drugs, but perfectly fine for the government to now profit off of it?

If they really want to set an example, I say they should destroy the coins.

[spin]

The coins will just change hands. It belonged to Silk Road now it will belong to someone else.

Yeah but at what price? And who will buy it?  Especially if it's sold in one go.  What's the process.

This looks to be providing somewhat relevant info:
http://www.usmarshals.gov/foia/Directives-Policy/Asset%20Forfeiture%20Manual/13.4.pdf
Though the % of market price has been blacked out?

Looks like it has to be sold within 120 days?
It says traded stocks are sold via a stockbroker.  Maybe they will sell the bitcoin in the open market? Which one?  Don't think there is a US one?

This also seems relevant: http://www.usmarshals.gov/foia/Directives-Policy/Asset%20Forfeiture%20Manual/13.4-3.pdf

EDIT:  I have no idea of which agency may be handling this.  The above is form the US Marshals.  Does someone know which agency/dept will process this and what their typical procedures are?  I'm not US based.

[porcupine87]

Ahm so they have to make a auction. They don't just sell it on btc-e or something like this with an 29 000btc sell order? -> that would be the mother of walls

And does anybody know when the auction will be? Next week? In 6 months?

[spin]

Ahm so they have to make a auction.

How/where do you see that?

If I were them I'd sell it on all the markets in dribs and drabs over the 120 days.  That would be the easiest.

But again who is the agency that's handling this?  And do they have published procedures? 

[xDan]

hmm, wonder if it was the "Fork The Blockchain" thread that prompted this 

[dissident]

I wish they'd just send them to me. That would make my.....

[EvilPanda]

Ahm so they have to make a auction. They don't just sell it on btc-e or something like this with an 29 000btc sell order? -> that would be the mother of walls

And does anybody know when the auction will be? Next week? In 6 months?

No they won't. Why would they choose Btc-e not gox, stamp coinbase or any other? Next thing is that I don't believe they want to crash the market and limit their own profit. They will auction it IMO, either in parts or as a whole.

[PrintMule]

I like the auction idea the most. With such press support, it may turn out even a better deal than simply going into exchange.

I wonder how would they distribute the total amount. Sell in batches of 10 BTC maybe?

[b!z]

Great news. We're headed to the moon, gentlemen.

[zeetubes]

Can't remember which show but Max Keiser offered to cut them a check straight away.

[bitpop]

WHEN? All this fud is lowering the price. It's going to take them months.

[gentlemand]

does anyone know what proportion of trade on silk road was for legal goods? i'd feel a bit annoyed if the feds had the money i'd put on there to buy a lovely painting for my grandma, caveat emptor regardless.

[LiteCoinGuy]

this is the best news ever

[1] You have a law enforcement agency of the US recognising the not only the value in bit-coins, but showing it is fully legal to sell them for FIAT. You probably couldn't ask for a better endorsement. (I wonder if the need a money transmitters licence to do this?)

[2] They are going to have to auction them of for the best price, I think the bids will really go up.

[3] the $25 mill / 26K of coins is not that much given the volume of BTC traded a day ~ about a days worth of trade on a slow day.

[4] The advertising factor of the alone is worth $25 Mil.

[5] people / weak hands that don't understand this giving us cheap coins

lol , true

[bitpop]

does anyone know what proportion of trade on silk road was for legal goods? i'd feel a bit annoyed if the feds had the money i'd put on there to buy a lovely painting for my grandma, caveat emptor regardless.

Yeah and I was trying to buy a lava lamp

[crazy_rabbit]

Personally I'm excited about this and I'm trying to round up some cash to buy in at new lows. :-)

[jonanon]

Count me in for some cheap coins! In the long run this won't have any real affect on Bitcoin