FBI Seized coins on the move

[dhomstad]

*Update: user bitcoin has linked to the U.S. Marshalls declaring a sale of 29,656.51306529 bitcoins http://www.usmarshals.gov/assets/2014/bitcoins/. Registration, accompanied by a deposit of $200k USD, will occur by Monday June 23rd, 2014. Online bidding will take place Friday June 27th, 2014. Winning bidders to be notified the following Monday, June 30th, 2014. Winners must make final payments by Tuesday, July 1st, 2014.*

This gives us 15 days until the online auction begins. Very short term event happening here.

There has been rumors of VC attempting to purchase the coins that the FBI seized from DPR's Silk Road accounts.
The ~173,000 coins sat dormant from 10/25/2013 for 230 days until 6/12/2014. Is the FBI simply doing some type of account management, or are they preparing for sale?

These coins account for approximately 1.3% of the current coins in circulation. Is demand strong enough to absorb this quantity over a short period of time? How will the price be affected?

https://blockchain.info/address/1FfmbHfnpaZjKFvyi1okTjJJusN455paPH
Address first seen 2013-10-25 01:27:54

https://blockchain.info/address/1F1tAaz5x1HUXrCNLbtMDqcw6o5GNn4xqX
2013-10-02 10:27:16

[Tzupy]

I have been watching the US marshals auction / sales site for months, but yet no mention of bitcoins for sale there.
What other type of auction / sales can the feds resort to?

[serenitys]

I have been watching the US marshals auction / sales site for months, but yet no mention of bitcoins for sale there.
What other type of auction / sales can the feds resort to?

Really?

Back alley, smokey back room of a bar, empty parking lots, abandoned industrial complex...they call it "private sales" 

[bitcon]

just how far will this fall?

[wobber]

lower $300s

[RodeoX]

I don't think the FBI can legally sell those coins until the trial is over and a guilty verdict has been entered. It will most likely be years from now.

[serenitys]

And then there are those agents who will inevitably try to shave a little for their own interests...

[RodeoX]

And then there are those agents who will inevitably try to shave a little for their own interests...

In the FBI? Those boy scouts don't even J walk.

[thezerg]

what kind of discount do you think they can ask for?  Its gonna be a real scandal if they do a private sale for something significantly less than the market price.  The fungibility of Bitcoin (as compared to houses, cars, etc) means that there's no excuse for a lowball sale...

[wobber]

I really really hope that the pussyhands didn't panicked on the FBI coins today. It would really show how fragile the bitcoin economy is.

[RiverBoatBTC]

I do not think they need to wait to the end of the trial on this one, those crimes where held by a criminal organization no matter if it was DPR as the leader or not.

They usually contract someone out to do sales for them and give them a cut, which makes it in the interest of the contracted seller to get the highest price possible and advertise far and wide. I think we will see a bitcoin business pop up shortly and say they have been contacted by the GOV to dispose of coins.

[piramida]

I really really hope that the pussyhands didn't panicked on the FBI coins today. It would really show how fragile the bitcoin economy is.

what? how price moving 5% on fud shows anything about bitcoin *economy* ffs? is GM stock price moving 10% down shows how fragile ford cars have become? what if it just moved 100% up, still shows?

All that it shows is that people are stupid; that's an axiom which did not need any further proving. As for bitcoin economy, stronger than ever thank you

[bitcon]

interesting:

http://www.usmarshals.gov/assets/2014/bitcoins/

[wobber]

interesting:

http://www.usmarshals.gov/assets/2014/bitcoins/

Shit

$300 pe BTC if the buyer sells on exchanges! I suspect auction buying price will be 70-80%, right?

[RiverBoatBTC]

shit at 400 a coin for 1 block of 3000 is over 1.25 mil

[relm9]

interesting:

http://www.usmarshals.gov/assets/2014/bitcoins/

Shit

$300 pe BTC if the buyer sells on exchanges! I suspect auction buying price will be 70-80%, right?

Anyone making a bid for that much BTC wouldn't turn around and dump it on exchanges. As for the price, could end up being higher than market rate, seeing as you can't easily get that many coins on exchanges without driving up the price.

[BTCfan1]

@ 600/coin its around 17mil, wouldn't that only help to boost the price of BTC?

[wobber]

Guys, I think we have to prepare for some rough times ahead. This will be a shit storm. If the auction winner will buy them 20% cheaper, HE WILL SELL SOME ON EXCHANGES.

Anyway, can someone lend me $18 mil?

[wobber]

interesting:

http://www.usmarshals.gov/assets/2014/bitcoins/

Shit

$300 pe BTC if the buyer sells on exchanges! I suspect auction buying price will be 70-80%, right?

Anyone making a bid for that much BTC wouldn't turn around and dump it on exchanges. As for the price, could end up being higher than market rate, seeing as you can't easily get that many coins on exchanges without driving up the price.

I admit, good point. Nobody can buy 29k coins withound market impact.

[RiverBoatBTC]

@ 600/coin its around 17mil, wouldn't that only help to boost the price of BTC?

I can promise you no one is going to bid anywhere near market price on these. Most investors top mark of a investment is 70% of the value after expenses. @ 600 a coin they would bid around the $420 mark.