US Marshalls auction SilkRoad bitcoins

[Parazyd]

There are millions of better ways the government can speculate or invest into BTC.

And they have no reason to do so.  Just as they have no reason to speculate or invest in Apple stock or rare stamps.

It's easier to print money
I still don't get it how they can be one of the most powerful countries with such government.
Really makes no sense to me. Maybe it's because I haven't seen how they actuay function, but you can't be in such debt and doing nothing to actually get out of it.

[jonald_fyookball]

There are millions of better ways the government can speculate or invest into BTC.

And they have no reason to do so.  Just as they have no reason to speculate or invest in Apple stock or rare stamps.

It's easier to print money
I still don't get it how they can be one of the most powerful countries with such government.
Really makes no sense to me. Maybe it's because I haven't seen how they actuay function, but you can't be in such debt and doing nothing to actually get out of it.

I think it has something to do with the fact that the dollar is the world reserve currency.  But they can't keep piling on more debt forever.  Other countries are already starting to stop taking on new dollar debts.  China said something a few months back about that.  They don't want to just pull the rug out though cause that would make their holdings worthless if they completely crash the dollar, plus we buy a lot of their goods , so it's an interdepency but I think they are trying to wean themselves off the dollar.

[birr]

Wish I could get in on this action. 

Alas I don't have the minimum $200,000 to place a bid.   

Second Market is accepting bids for aggregation:
https://bitco.wufoo.com/forms/participate-in-us-marshals-bitcoin-auction/

[Justin00]

would be funny if the FBI dude comes on here complaining he got scammed and wished he used escrow :p

[Parazyd]

would be funny if the FBI dude comes on here complaining he got scammed and wished he used escrow :p

LOL! Imagine that to happen.
Knowing the feds, that actually could happen

[Harley997]

is it me or does it look like the FBI wants to give their friends coins on the cheap? it's like they're not going to even try to get the most out of the bitcoins they own..

No more for bitcoin than for any other merchanise.  It is not part of their mission to make a profit from sales of seized stuff.

Why do people think that the FBI views seized bitcoins any different from seized cash, gold, stocks, etc?

FBI guy:  How are we going to get rid of these things.
USMS guy:  How about 10 lots of 3,000 each, highest bidder, silent auction?  That will be the least amount of work for us.
FBI guy:  Sounds good.

This is the norm in how seized assets are sold.

The US Marshals takes possession of the assets, they make an announcement regarding the up coming auction along with the details of the auction, they hold the auction in a similar manor.

[BetMoose]

Any ideas on WHO (or at least what TYPE) of buyer it will be?

[QuestionAuthority]

Any ideas on WHO (or at least what TYPE) of buyer it will be?

Yes, people that can plop down a $200,000 deposit and follow it up with a one to two million dollar cash payment if they win the bidding.

Not me and, I don't know you but since you hang out here on this forum, probably not you.  

Those are the people that will buy them.

Anyone up for a group buy?

[BurtW]

Any ideas on WHO (or at least what TYPE) of buyer it will be?

Yes, people that can plop down a $200,000 deposit and follow it up with a one to two million dollar cash payment if they win the bidding.

Not me and, I don't know you but since you hang out here on this forum, probably not you.  

Those are the people that will buy them.

Anyone up for a group buy?

You can participate here:

https://bitco.wufoo.com/forms/participate-in-us-marshals-bitcoin-auction/

[QuestionAuthority]

Any ideas on WHO (or at least what TYPE) of buyer it will be?

Yes, people that can plop down a $200,000 deposit and follow it up with a one to two million dollar cash payment if they win the bidding.

Not me and, I don't know you but since you hang out here on this forum, probably not you.  

Those are the people that will buy them.

Anyone up for a group buy?

You can participate here:

https://bitco.wufoo.com/forms/participate-in-us-marshals-bitcoin-auction/

Thanks

[JorgeStolfi]

Anyone up for a group buy?

But how would the group decide on the bid price?

If it is a large informal group, it may include spies who will tell competitors what the group plans to offer, and they will bid 0.01$ higher.

The group would have to choose a trusted manager, who will decide the bid price without telling anyone in the group.  If he loses the auction because he bid too low, or people lose money in the end because he bid too high, would the group forgive him?

[Littleshop]

Wish I could get in on this action. 

Alas I don't have the minimum $200,000 to place a bid.   

Second Market is accepting bids for aggregation:
https://bitco.wufoo.com/forms/participate-in-us-marshals-bitcoin-auction/

I cannot see how this matches the USM requirements of knowing and approving bidders.  If they are really bidding for a group and disguise that they will be lying to the government.  If the group is large and they honestly name the members and one is not eligible would not that invalidate the whole group?   

[jonald_fyookball]

Anyone up for a group buy?

But how would the group decide on the bid price?

If it is a large informal group, it may include spies who will tell competitors what the group plans to offer, and they will bid 0.01$ higher.

The group would have to choose a trusted manager, who will decide the bid price without telling anyone in the group.  If he loses the auction because he bid too low, or people lose money in the end because he bid too high, would the group forgive him?

I'd be up for a group buy if we lowball an offer. 

[Harley997]

Anyone up for a group buy?

But how would the group decide on the bid price?

If it is a large informal group, it may include spies who will tell competitors what the group plans to offer, and they will bid 0.01$ higher.

The group would have to choose a trusted manager, who will decide the bid price without telling anyone in the group.  If he loses the auction because he bid too low, or people lose money in the end because he bid too high, would the group forgive him?

I'd be up for a group buy if we lowball an offer. 

The flaw with a group buy is that everyone will be unrelated to eachother and many questions would need to be resolved in a very short period of time.

[bitcoinstarter]

would be funny if the FBI dude comes on here complaining he got scammed and wished he used escrow :p

LOL! Imagine that to happen.
Knowing the feds, that actually could happen

this could happen!

[JorgeStolfi]

The flaw with a group buy is that everyone will be unrelated to eachother and many questions would need to be resolved in a very short period of time.

Indeed it seems complicated.  Each member will have to hand in upfront some fraction F of 200'000 dollars, and if the group wins the auction he MUST immediately wire in F times  3000 times X, where X is the price that the group bid at (which of course the member cannot be told in advance), so that the group can send the total to the USMS by wire -- all that in a very short time.

If one member fails to pay, or has the payment delayed the entire group loses the auction AND their deposits. 

So it seems that every member will have to send to the group leader, right from the beginning, a sum greater than F times 3000 times the maximum X that the group leader is allowed to bid.  But that maximum X cannot be much lower than the estimated market price at the date of closing, otherwise competitors (who can easily infiltrate a spy) will outbid the group.

[Harley997]

The flaw with a group buy is that everyone will be unrelated to eachother and many questions would need to be resolved in a very short period of time.

Indeed it seems complicated.  Each member will have to hand in upfront some fraction F of 200'000 dollars, and if the group wins the auction he MUST immediately wire in F times  3000 times X, where X is the price that the group bid at (which of course the member cannot be told in advance), so that the group can send the total to the USMS by wire -- all that in a very short time.

If one member fails to pay, or has the payment delayed the entire group loses the auction AND their deposits. 

So it seems that every member will have to send to the group leader, right from the beginning, a sum greater than F times 3000 times the maximum X that the group leader is allowed to bid.  But that maximum X cannot be much lower than the estimated market price at the date of closing, otherwise competitors (who can easily infiltrate a spy) will outbid the group.

In order for a group buy to be successful the funds would need to be pooled prior to submitting the group's bid.

There is realistically not enough time to coordinate a group buy. The winning bidder will likely receive somewhat of a discount, however I don't think it would be so massive that it would be the deal of a lifetime.

[skivrmt]

Wish I could get in on this action. 

Alas I don't have the minimum $200,000 to place a bid.   

Second Market is accepting bids for aggregation:
https://bitco.wufoo.com/forms/participate-in-us-marshals-bitcoin-auction/

I cannot see how this matches the USM requirements of knowing and approving bidders.  If they are really bidding for a group and disguise that they will be lying to the government.  If the group is large and they honestly name the members and one is not eligible would not that invalidate the whole group?   

Not sure how SecondMarket does it but they did it.  In increments of $25k or $50k depending on various people you talk to.  I'm part of a group.  Bids were due today at noon.  We made our bid and find out Monday if it got accepted.  I'll reveal bid amount Monday after we know if it was accepted or rejected.

[Harley997]

Wish I could get in on this action. 

Alas I don't have the minimum $200,000 to place a bid.   

Second Market is accepting bids for aggregation:
https://bitco.wufoo.com/forms/participate-in-us-marshals-bitcoin-auction/

I cannot see how this matches the USM requirements of knowing and approving bidders.  If they are really bidding for a group and disguise that they will be lying to the government.  If the group is large and they honestly name the members and one is not eligible would not that invalidate the whole group?   

Not sure how SecondMarket does it but they did it.  In increments of $25k or $50k depending on various people you talk to.  I'm part of a group.  Bids were due today at noon.  We made our bid and find out Monday if it got accepted.  I'll reveal bid amount Monday after we know if it was accepted or rejected.

second market is making bids for the blocks. Their bids will be based on how their investors want to bid and second market will not have any direct control over the bid amount.

Previously second market was only selling bitcoin in blocks of $25k

[skivrmt]

We bid $455 which at the time was 81% of market value.  Not accepted of course.  Rumor has it winning bid(s) was at spot or maybe even above spot.