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

[btbrae]

Nonsense, there was no question over whether selling bitcoins for FIAT was legal in the US.

Also, a lot of BTC volume is traded back and forth, not one way, so dumping 26k coins WILL make a different to the price, especially on a slow day.

It's not terrible news, but it's certainly not "the best news ever". 

[the_poet]

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

I totally agree.

[Kazimir]

Based on 114,636 BTC daily, the 29,655 BTC that the FBI is about to sell is what is normally being sold approximately every 6 hours. What's the big fuss about.

[Minor Miner]

Based on 114,636 BTC daily, the 29,655 BTC that the FBI is about to sell is what is normally being sold approximately every 6 hours. What's the big fuss about.

Most exchanges count the buy and the sell.   So double 29,655 or half your exchange volume estimate.  It is a huge amount of one days volume.   
If you want to know why it would move the market temporarily, good supply and demand and its effect on pricing.

[jcoin200]

Any word on how/when the BTC will be auctioned off?  Who else thinks they might just go to some insider before the public has a chance to get them.

[Solidchance]

[Littleshop]

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

Agreed.

Also these coins WILL NOT be sold on an exchange.  They will be auctioned by the normal federal process.  Do you think they are going to send the coins to MTGOX for sale?  That would be funny but it will not be happening. 

[Sweetrevenge]

I can't believe how no one talking about how a guy is being relieved of 25 million dollars of his cash for getting caught. Honestly, he shouldn't even be getting any jail time at all since he just donated more money to the FBI then a year's worth of taxes.

[analytics]

I call major bullshit here.  25M is not all the coins.  Nor do I see how they can sell assets before any court case has even started.   

This reeks of short selling hype.

[thegolden24]

I call major bullshit here.  25M is not all the coins.  Nor do I see how they can sell assets before any court case has even started.   

This reeks of short selling hype.

theres two wallets owned by dpr one with 144,000 coins and another with 29,000 I guess theyre starting with the smaller one. Just google "silkroad seized coins" and you find them on the blockchain.

[nodroids]

I got short at the beginning of the week, and sweated... I hate selling coin at anytime. But now it appears to have been a smart move (just need some therapy to repair the trama from having my stash down by %10 for a few days). My game plan is coming together, I now have thousand$ waiting to catch this fall out. I can't believe people are selling coin under $4000 right now, and thank you!

[BitChick]

Anyone have an idea where these auctions usually take place?  Not that I have any spare change to spend but I am curious.  

I do think this is actually good for BTC.  Besides the minor panic selling yesterday and today, this is all free advertising!    

I guess I am a bit more concerned about what will happen to Ulbricht's 144,000 coins that are still in limbo.  Hopefully he lost the keys somewhere!    

[seriouscoin]

Anyone have an idea where these auctions usually take place?  Not that I have any spare change to spend but I am curious.  

I do think this is actually good for BTC.  Besides the minor panic selling yesterday and today, this is all free advertising!    

I guess I am a bit more concerned about what will happen to Ulbricht's 144,000 coins that are still in limbo.  Hopefully he lost the keys somewhere!    

You must be blonde.....

They already got the key and moved the coins to their own address. Can you read btw?

[TheButterZone]

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.

Doesn't matter, they don't discriminate. Victimful crime money, victimless crime money, not a crime at all money, they take it all by force, and it's never, EVER, enough.

http://www.forbes.com/sites/kashmirhill/2014/01/16/the-feds-are-ready-to-sell-the-silk-road-bitcoin-kind-of/
“Any Silk Road users who had legitimate holdings on the site are out of luck.”

No wonder why anarchy is preferable to the chaos all governments administer, waving their magic wand and labeling 100% non-criminal transactions/funds thereof, “money laundering”.

[BitChick]

Anyone have an idea where these auctions usually take place?  Not that I have any spare change to spend but I am curious.  

I do think this is actually good for BTC.  Besides the minor panic selling yesterday and today, this is all free advertising!    

I guess I am a bit more concerned about what will happen to Ulbricht's 144,000 coins that are still in limbo.  Hopefully he lost the keys somewhere!    

You must be blonde.....

They already got the key and moved the coins to their own address. Can you read btw?

So I am.   I had not heard that Ulbricht's stash of 144,000 had been moved anywhere.  Regardless, that makes me more nervous than the 29,000.

[BitchicksHusband]

Anyone have an idea where these auctions usually take place?  Not that I have any spare change to spend but I am curious.  

I do think this is actually good for BTC.  Besides the minor panic selling yesterday and today, this is all free advertising!    

I guess I am a bit more concerned about what will happen to Ulbricht's 144,000 coins that are still in limbo.  Hopefully he lost the keys somewhere!    

You must be blonde.....

They already got the key and moved the coins to their own address. Can you read btw?

Yes she is blonde (well, fake)...

Maybe she missed an article somewhere along the way.  But yes, the coins are no longer in limbo.  They have been moved to an FBI controlled account.

Try some manners, dude.

[jubalix]

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

Agreed.

Also these coins WILL NOT be sold on an exchange.  They will be auctioned by the normal federal process.  Do you think they are going to send the coins to MTGOX for sale?  That would be funny but it will not be happening. 

that would be classic as they wouldn't get their usd back for .... well ever

[BitChick]

Anyone have an idea where these auctions usually take place?  Not that I have any spare change to spend but I am curious.  

I do think this is actually good for BTC.  Besides the minor panic selling yesterday and today, this is all free advertising!    

I guess I am a bit more concerned about what will happen to Ulbricht's 144,000 coins that are still in limbo.  Hopefully he lost the keys somewhere!    

You must be blonde.....

They already got the key and moved the coins to their own address. Can you read btw?

Yes she is blonde (well, fake)...

Maybe she missed an article somewhere along the way.  But yes, the coins are no longer in limbo.  They have been moved to an FBI controlled account.

Try some manners, dude.

Ahhh.  My chivalrous husband is sticking up for me!  

[Littleshop]

Anyone have an idea where these auctions usually take place?  Not that I have any spare change to spend but I am curious.  

I do think this is actually good for BTC.  Besides the minor panic selling yesterday and today, this is all free advertising!    

I guess I am a bit more concerned about what will happen to Ulbricht's 144,000 coins that are still in limbo.  Hopefully he lost the keys somewhere!    

A committee will be formed on what to do with them.  It could take a while.

[SirBitsalot]

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

Better months than never!