Dilemma of FBI coins

[mprep]

They will be sold in bulk at a discount auction. No need to worry. This is actually a good thing because it removes uncertainty.

So once sold, it'll probably be a good time to invest due to the temporary drop of price?

If they are sold in bulk to private buyer(s), the price will be unaffected.

Unless he dumps it to an exchange, which someone, who might not know how BTC properly works, might do. You never know who would win the auction.

[aksplace]

27 million worth of Bitcoin should not drop the rates to much unless it's inflated...

[vpitcher07]

I heard the Foundation is trying to convince the FBI to sell the BTC in multiple auctions instead of one not to crash the price.

And give me one single reason. Why should FBI listen to bunch of techie with a mission to change future of money?

Remember when the US was all about innovation and the freedom to invent and change the world? Yeah me neither. Our current politicians are the most corrupt group of people this congress has ever seen.

[meelvanchris]

Actually from what i gather its close to 120mil $ in bitcoins.
But i dont think they can sell m just yet. One of the downsizes of being the FBI is that you have to act according to the law. (at least when the general public is watching)

The owner of Silk Road, the one they siezed the coins from for illegal web drugsselling (how stupid ) Anyway, he is starting up a lawsuit vs them to get back his coins claiming that he did not get them from the drugs. So that being part one, they cannot just sell it as a judge might (unlikely but might) rule in favor, so they you owe a debt. #1 why i dont think they can sell..

#2 yet to be determined who gets the money when sold. Cannot just go into the FBI, that would be illegal obtained drug money (their words) so eveidance, and govermnemnt cannot just take drug money and put it into their own account, has to go trough the proper channels..

My bet is itll take some time before they even have a battle plan, let alone get every1 to sign along with it... ofc i could be wrong, opinions after all

[mprep]

Actually from what i gather its close to 120mil $ in bitcoins.
But i dont think they can sell m just yet. One of the downsizes of being the FBI is that you have to act according to the law. (at least when the general public is watching)

The owner of Silk Road, the one they siezed the coins from for illegal web drugsselling (how stupid ) Anyway, he is starting up a lawsuit vs them to get back his coins claiming that he did not get them from the drugs. So that being part one, they cannot just sell it as a judge might (unlikely but might) rule in favor, so they you owe a debt. #1 why i dont think they can sell..

#2 yet to be determined who gets the money when sold. Cannot just go into the FBI, that would be illegal obtained drug money (their words) so eveidance, and govermnemnt cannot just take drug money and put it into their own account, has to go trough the proper channels..

My bet is itll take some time before they even have a battle plan, let alone get every1 to sign along with it... ofc i could be wrong, opinions after all

Regarding No. 2, the money goes to the US treasury.

[meelvanchris]

Regarding No. 2, the money goes to the US treasury.

quick google said ur prob right (im from eu so not familiar with all the ins and outs)

However us treasury websites says, :
Treasury Auctions
 Each year approximately 300 public auctions are conducted throughout the U.S. and Puerto Rico to sell property forfeited as a result of violations of federal law enforced by the Department of the Treasury or nonpayment of Internal Revenue Service taxes.

So then i would say the FBI would have to hand over the actual bitcoins to the Treasury for them to auction them off.. and fbi itself would have no say in the actual bitcoin wallet....or no? =)

[st4nl3y]

http://www.forbes.com/sites/kashmirhill/2014/01/16/the-feds-are-ready-to-sell-the-silk-road-bitcoin-kind-of/

[meelvanchris]

http://www.forbes.com/sites/kashmirhill/2014/01/16/the-feds-are-ready-to-sell-the-silk-road-bitcoin-kind-of/

Kinda says it all thanks

[mprep]

Regarding No. 2, the money goes to the US treasury.

quick google said ur prob right (im from eu so not familiar with all the ins and outs)

However us treasury websites says, :
Treasury Auctions
 Each year approximately 300 public auctions are conducted throughout the U.S. and Puerto Rico to sell property forfeited as a result of violations of federal law enforced by the Department of the Treasury or nonpayment of Internal Revenue Service taxes.

So then i would say the FBI would have to hand over the actual bitcoins to the Treasury for them to auction them off.. and fbi itself would have no say in the actual bitcoin wallet....or no? =)

FBI complete orders, they can't say anything or do anything unrelated to security without the government's agreement. So if the gov tells them, they obey. BTW, I'm from EU, so I'm not a pro in these kind of situations as well.

[SirBitsalot]

Honestly, I wouldn't be too worried about it. We've trusted far worse people with far greater things.

[jubalix]

Considering there are only two kind of people/organization- rational and irrational. To which category US/FBI belong? I think, rational. And rational people, try to maximize their profit in every possible way as per their knowledge domain. For example, people who hold thousands of coin don't spend in one shot. They spend in chunks depending on price and future prediction. What about FBI/US? Considering, them as an organization/person existing for the good of society. When it comes to money(specially money received for negligible/free)... we all need money. And for everything money is needed. So, according to me-FBI/US will try to maximize their profit, in order to do better for the society, reduce crime etc. And who has better access to testified knowledge? For sure personnel in FBI or government organization. And when they're deciding to sell those seized coin, means they think they can't get more than this. I've ignored judiciary in this assumption as I know nothing about them. Do they order to sell coin? Or organization decides? For sure, organization is also run by officials and most of the decision are taken by top-rational officers. Not referendum.

If they're selling then should I worry? Because they know more than I do and they can take better decision about selling them(perfect time to sell). Or is it other way round that, FBI/US sees opportunity to break confidence of market because plummets when large number of coins are dump and which will further panic market thereby decreasing price more.

gov orgs are tax backed so they are irrational actors as they don't face much market discipline, rahter you do via tax for their bad decisions. FBI?Executive gov just follow a policy/legislative provision or claim to unless that legislation si changed or tested in the courts

[mprep]

Honestly, I wouldn't be too worried about it. We've trusted far worse people with far greater things.

Yeah, like we trusted Stalin with USSR, Hitler with Germany...

[samjtemp]

This was actually good news. Obviously they aren't going to dump them onto an exchange (it'd be entertaining to see Mt Gox 'seize' them back.)

A private auction means more than likely a rich businessman will buy them up to reinvest back into the bitcoin economy. Such as a month ago when there was a record number of bitcoin days destroyed as 100,000's of bitcoins traded hands.... and soon afterward Tradefortress had set up a bitcoin ETF.

[kik1977]

The auction will be kept secret from the general public and in all likelihood, will be sold for bargain prices to FBI insiders. By the time prices start to drop, the auction will already be over and bitcoin traders will be none the wiser. Weeks later, a bulletin will go out from the FBI declaring that they've been sold, and that will be it.

Why don't you start at least with "IMHO" since, obviously, you have no idea what you're talking about?

[nowise]

I just imagine some auction hall with a slick auctioneer selling off chunks of 10k btc.   Bidding starts at five million do I have five and half we do and do we have 6 hummblah humblahh blah blah blah blah SOLD for seven and a half million.

Like this --> https://www.youtube.com/watch?v=vxLxdgae-dY but with bitcoins and crappy looking rich neck beards (no classy cowboy hats)... the auctioneer is the same.

[bennybong]

I don't think anyone is going to purchase millions of dollars worth of bitcoin from the FBI.... Anyone with that kind of cash is very suspect to say the least. The kind of people the FBI work hard to stop. Hell, any transaction over 10,000 in the UK must be accounted for right? It kind of goes against everything they have been trying to do to supress bitcoin. Double standards ftw?!

[Morbo]

the US was all about innovation and the freedom to invent

Huehuehue

Tell that to Tesla

the guy, not the car

[Buffer Overflow]

I don't think anyone is going to purchase millions of dollars worth of bitcoin from the FBI.... Anyone with that kind of cash is very suspect to say the least.

So your saying it's impossible to become wealthy legitimately?

[_Miracle]

If the concern is that the sale will drive the price down, then save your money so that you can buy more bitcoin if that happens.
This is another precedent being set by a government confirming that a bitcoin has value.
It's not a bad thing.