US Marshals Will Sell 50,000 Silk Road’s Bitcoins Added: Wednesday, March 4th, 2015
Category: Recent Headlines Involving File Sharing > Current Events
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, 2013, www.extratorrent.cc
The American government announced it is going to auction 50,000 Bitcoins soon. This decision was taken after Ross Ulbricht was recently convicted for running the online black market dubbed “Silk Road”.
This will not be the first auction being conducted by the US marshals service: in relation to Silk Road, it is the 3rd auction for Bitcoins seized. The prosecutors claimed that the cryptocurrency seized allowed customers buy and sell drugs and other illegal products beneath the radar of law enforcement. Ross Ulbricht, 30, was found guilty a few weeks ago by a federal jury in Manhattan – of drugs and other charges, including helping to enable about $200 million of anonymous online drug sales using cryptocurrency.
According to prosecutors, Ross Ulbricht had been operating Silk Road market under the nickname “Dread Pirate Roberts” until FBI shut down the service in October 2013. In the court, Ross conceded that he did create Silk Road, but then handed it over to the third party and was not responsible for illegal activity conducted there.
US marshals service announced that 50,000 Bitcoins (an online virtual currency) would be offered in 10 blocks of 2,000, and 10 blocks of 3,000. All bidders are required to register for the 6-hour auction three day before the auction, and winners will be notified next day after the auction.
It must be noted that previous auctions could bring the US government more money, as Bitcoins have lost roughly 80% of the value since its peak closing high of $1,147.25 in December 2013. Such volatility is explained by Bitcoin’s decentralized nature and small trading volume. Now the value of one digital coin is about $230. The US government auctioned about 30,000 Bitcoins seized from Silk Road in June 2014, and 50,000 Bitcoins more in December – at the time of the auctions, Bitcoin rate was respectively about $601 and $369 per coin.
As for the site operator, he consented to the latest auction in connection with a civil forfeiture proceeding. Ross Ulbricht faces up to life in prison – he will be sentenced in the criminal case on 15 May.Posted by: Date:
Wednesday, March 4th, 2015
|posted by (2015-03-04 07:57:19)|
|Crime pays...for the goverment.|
|posted by (2015-03-04 13:31:53)|
|In other words, the criminals can not launder money, but the police can.|
|posted by (2015-03-04 19:50:12)|
|The U.S. Treasury has tried for years to kill Bitcoin, stating that only they can issue currency used in commerce. Now with one fell swoop the Department of Justice, in auctioning off the Silk Road Bitcoins, has brought legitimacy to the crypto currency. Sorry boys, you can't have it both ways! To me, this action is rather like the DEA auctioning off the drugs from cartel seizures. In "Miracle on 34th. Street", Kris Kringle was acknowledged to be "the real Santa Claus", because the post office, (an official branch of the U.S. Government), recognized him as such. All fiction aside, it does make for an interesting precedent!|
|"The prosecutors claimed that the cryptocurrency seized allowed customers buy and sell drugs and other illegal products beneath the radar of law enforcement" and "...including helping to enable about $200 million of anonymous online drug sales using cryptocurrency" make for two very, very interesting points; Ross gets nailed for these charges and has to worry about the soap being too slippery when he goes to prison, but how likely is it that the US Marshals are going to get the same charges brought against them if/when the bitcoins they auctioned off end up being used in the exact same way that landed Ross in scary-shower-land?|
|No the court sells them and the Marshals just make sure its done right... just like any other seized item from any other case.|
"but how likely is it that the US Marshals are going to get the same charges brought against them if/when the bitcoins they auctioned off end up being used in the exact same way that landed Ross in scary-shower-land?"
They will not be charged with anything and only a fool would even say something like this. If they auction off a car will they be charged if the person gets a dui? umm no... If someone decides to use them for illegal means then they are the ones committing the crime and not the Marshals who are acting on a court order...
|"No avatar In other words, the criminals can not launder money, but the police can." its not money its treated like anything else of value and since its a auction then the people can bid or laugh at it. The court doesn't care what it is unless its been outlawed and anything other than that will be auctioned off.|
"rexeus avatar Crime pays...for the goverment." give me a break. This will be auctioned and used to pay curt costs and any claims owed. In most cases the Gov doesn't make crap.
|Im not familiar with the ins and outs of bitcoin currency but if one bitcoin is worth about $601 and $369 per coin what if you want to buy something for a $100 do you have to pay these amounts for one coin ?|
|posted by (2015-03-06 09:10:24)|
|the coins can be used in fractions kevibhoy67|
|Digital69, thanks for proving my point for me :p|
Say Ross sells a car, and gets charged with *enabling* murder because the one who bought the car off of him deliberately plowed the car into a few children...
Should the same then not apply to the Marshals - or the court as you pointed out - selling that same car to that same buyer then?
Car >> bitcoins; charged with *enabling* some buyer to do something >> marshals ensuring that the court sells the coins right??? Uhm... so.... who-ever buys these bitcoins can't use them to pay anything because then there is no telling where these coins end up, and by golly, heaven forbid it's an actual druggy dealy type who buys them directly at the auction.... heheh...
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