Virtual Currency Slides As FBI Prepares To Dump 144,341 "Silk-Road" Bitcoins

Tyler Durden's picture

The FBI announces it is preparing to sell the 144,341 Bitcoins that were collected during raids in the online drug market Silk Road. While the WSJ reports, the timing and sales method are unclear, it is already weighing on the virtual currency as the Bitcoin traders front run the Fed's unwind...

  • *FBI SAYS TO TRANSFER BITCOINS TO U.S. MARSHALS
  • *FBI TRANSFER INVOLVED 144,341 BITCOINS SEIZED FROM SILK ROAD
  • *US MARSHALS TO AUCTION BITCOINS FROM SILK ROAD CASE
  • *US MARSHALS: AUCTION TO TAKE PLACE JUNE 27 6AM-6PM ET
  • *U.S. MARSHALS SERVICE SEEKS BIDS FOR 29,656 BITCOINS

 

 

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erkme73's picture

Go get'em fonestar

Jack's Digestible Ideas's picture

When somebody buys one of these BTC, will they automatically be labelled a terrorist, or does that come later?

 

I wouldn't be surprised to see them sold by the FBI at a fixed (much lower) price. You know, to get all those turrists out into the open.

 

Pass.

CH1's picture

Oh MY GAWD, Bitcoin is dead! AGAIN!!!

This is death number 16 by my count.

Pretty sick to cheer for the Fed.

Occident Mortal's picture

BOE's Carney just said GBP rates will rise this year.

CH1's picture

LOL... I just enlarged the chart to see that BTC fell to almost $550. Big fucking deal! Does anyone around here have a memory that goes back more than three days?

Call me when it gets to $200. again.

gh0atrider's picture

FUCK YEAH BITCOINZ!!!!!!!!!!!

 

                                    SATOSHI WE LOVE YOU!!

 

                    ALWAYS!!

BrosephStiglitz's picture

Call me a heathen, but maybe it isn't smart to ride this rollercoaster to the bottom?  The markets are no place for fanatics.  They reward stoic, objective and calculated behavior.

gh0atrider's picture

There is no bottom to Bitcoin.  I will buy at $100, $500, $5,000, $25,000... whatever.

BrosephStiglitz's picture

Alrighty.  I'll buy and sell as appropriate and keep on compounding gains.  Good luck with buy to hold though.

gh0atrider's picture

gh0atrider was going to pick up a few coins this week, glad he didn't miss the bottom.

Stackers's picture

Dumb sell-off. They are going to be auctioned off as big lots to an institutional investor like the Winklvoss brothers (whose ETF should be launching soon) and will never hit the open market on the exchanges. non-event.

OpenThePodBayDoorHAL's picture

The Tylers sticking with the shiny metal. Can't buy a break, WWIII starts in Mosul and gold goes *down*. Unlimited printing last year, gold *down* 28%. Maybe that should tell you something?

aminorex's picture

technology has made something which has better monetary properties than physical metal.  it is less destructible, less seizable, less stealable, less obvious, less likely to get you killed.  gold is too risky.

James T. Kirk's picture

"better monetary properties?"

Bitcoin is only a concept. It is not tangible. Wow. The real question is this: Which is more likely?

1. Someone will find a way to change the atomic structure of base metals into gold, thus devaluing the gold that already exists
2. Someone will find a way to degrade the conceptual "reliability" or "quality" of the "OWNERSHIP" of the POSITION of a microscopic binary switch inside a silicon semi-conductor.

Marco's picture

A cost effective way of seawater gold extraction could trash gold prices as well.

fallout11's picture

Cold fusion is more likely to happen in your lifetime.

PrettySkulls's picture

less stealable?

 

the FBI bought those 144k bitcoins, right?

Manslavedave14's picture

Excellent point Satoshi master! The only way bitcoin ends is in a cataclysmic Hunger Games type scenerio. Why would TPTB spend billions on their surveillance infrastructure via the NSA and placing camera's on every street corner if they actually plan on that scenerio??????? Zerohedger's need to realize that there are various investment vehicles. You don't have to only stack pm's!!!!! Unfortunately for me all of my pm's were lost in a tragic boating accident:-( Also, all of my most precious coinz:-(

gh0atrider's picture

This just shows how small of a market this is when selling 144,000 coins can move a market in a big way.  Like fonestar always said, there's not much difference between $5 BTC and $500 BTC.

Ignatius's picture

The FBI is clearly not following a 'best price' strategy.

Aaaarghh's picture

-1 simply for the ridiculous use of bold and caps.

gh0atrider's picture

WOOHOOOAAAA!!

 

                             CHEAP COINZ ARE HERE AGAIN!!

ijunk's picture

That's 1.12% of all bitcoin in existence. In gold terms that would be about 1900 metric tons.

TeamDepends's picture

Now that's some funny chit right there.  First of all, thinking of bitcoin in terms of numbers, as in, quantifiable.  Then, and this is difficult to say with a straight face, postulating that it is even possible to think of bitcoin in terms of gold, well, thith ith thimply ludicrouth.

gh0atrider's picture

If Bitcoin is going where some of us believe it is, the FBI could have been a major holder in the BTC markets.  They're fucking stupid for selling, they just gave up their positions.

crazytechnician's picture

But are they really selling ? Their wallet is being watched like a hawk , they want this wallet off of the peon's radar.

nailgunnin4you's picture

You give these flops way too much credit.

r0mulus's picture

perhaps i am overlooking something obvious, but, it seems that they should be able to simply seize whatever positions they are in need of as necessary.

does anyone know if there is a limit to how much transactional distance you would need from an illegal use of btc in order to be safe from having your btc seized? if there is none, i have a feeling this would be a possible way for the powers that be to manipulate btc and its users.

aminorex's picture

true, bitcoin is both scarce and useful.  gold is neither.

Manslavedave14's picture

Yes, once the wallstreet crowd gets in on this its to the moon!!!!!!

gh0atrider's picture

Back up the truck and load up on CheapCoinz!

what's that smell's picture

bitcoin? do you mean the fat man-child sitting on the work-out ball who disappeared into the night after the magic the gathering exchange went poot?

that bitcoin? 

gh0atrider's picture

SATOSHI YOU ARE THE LIGHT OF MY W0rLD!

BlackChicken's picture

Is that where the dark humor originates from?

Got it...

gh0atrider's picture

Nobody beats the Bitcoin!

NOOOOBODY!

TammanyBrawl's picture

Bitcoins! Get your Bitcoins, here! Limited time offer! Act now and we'll throw in at no extra cost a couple lines of NSA tracking code with each order!

Well, they finally found a way to kill Bitcoin. Just kill the belief that it is untracable and anonymous. 

gh0atrider's picture

Hey moron tell me how the NSA can track Bitcoin users please?  Cite papers and sources.  Waiting...

aminorex's picture

for all of your publically verifiable transactions, there is bitcoin.  for everything else, there is monero.

aminorex's picture

These bitcoins will sell far above the market price, because they are the first btc every to be guaranteed by the U.S. government to be legally unencumbered.  When they auction above the market-clearing price, the market will skyrocket.

NotApplicable's picture

Fonestar? I think you mean gh0atrider.

gh0atrider's picture

gh0atrider is with you my child!

prains's picture

you mean Goatrider is with child, riding goats can only last so long before it all goes terribly wrong.....oops you slipped, right?

MountainsRoam's picture

When is this chart gonna happen to the Nasdaq ?

swass's picture

It looked like it was already in the start of a waterfall decline prior to the FBI announcement.

seek's picture

Yeah. There were also some really unusual moves on wallets associated with Mt. Gox yesterday, so the speculation is not only are we seeking silkroad-related movements, but also possibly moves related to coins siezed from Mt. Gox -- there's a really interesting story behind those that has yet to be told, but there's credible speculation that the Japanese government has taken control of some large Gox wallets.

PacOps's picture

Is this the "buy at the dip" opportunity we've all been breathlessly waiting for?

 

 

Just kidding!

gh0atrider's picture

Bitcoin is going to four, five and six figures! 

FUCK YEAH BITCOIN!!