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> What if some of those Bitcoins are yours, not Ulbrichts? What if Silk Road is holding some of your Bitcoins as part of some transaction? Why, all you have to
by aray 13y ago
> What if some of those Bitcoins are yours, not Ulbrichts? What if Silk Road is holding some of your Bitcoins as part of some transaction? Why, all you have to do is show up and make a claim for them — in a case in which the government is saying that all or substantially all of the transactions through Silk Road are federal crimes. Bring a toothbrush.
Seems to answer the question of 'what happens to all the bitcoins' pretty readily. Interesting discussion of forfeiture law and "in rem" suits at the bottom, worth reading.
- drcode 13y agoIt still doesn't answer the question as to whether they will enter back in circulation. Will the feds just sit on them, or auction them off? This will impact the exchange rate.
- jessaustin 13y agoIn general the Feds "forfeiture" all the assets they ever get their grimy paws on. The armored vehicles, machine guns, and posh LEO facilities aren't going to buy themselves. http://www.justice.gov/jmd/afp/ http://www.justice.gov/jmd/afp/ So, if the Feds have the wallet(s), the BTC will be back in circulation, eventually. If they don't, the BTC probably won't appear until the actual SR proprietor has access to a computer again. What would be really hilarious, would be if whoever has the wallet(s) waits until the currently accused is sentenced before spending again.
- llamataboot 13y agoYou can't just say depositing money on a site is a crime, there were plenty of non-illegal things bought and sold at the Silk Road. Plus evidence of intending to one day maybe buy something illegal is not evidence of having bought something illegal. Tangentially related, in the cases where the USG seized offshore gambling sites, they returned deposits to the players, even though playing there was ostensibly illegal. Granted offshore gambling is a little murkier than buying heroin in terms of legality, but see paragraph #1. Having funds at/on TSR is not a crime.
- badman_ting 13y agoThis is such a flimsy argument that I don't get why anyone bothers. I suppose heavy-arms dealers should keep a pack of Twinkies with them at every sale. Somehow it reminds me if the old myth that a cop has to tell you they're a cop if you ask.
- llamataboot 13y agoNot really. I have yet to see anything that would make depositing money on TSR an illegal act or proof of intent to commit illegal activities.
- interstitial 13y agoI agree it is a flimsy argument. I'm sure arms dealers do have plausibly deniable cover stories and legitimate or sympathetic transactions occurring as well. The funnier thing is we can't call this the Twinkie defense, because that is already taken.
- erikpukinskis 13y agoAdditionally, plenty of things for sale on the Silk Road are legal in many jurisdictions. Maybe I live in Spain and I was on there to buy cannabis seeds.
- jessaustin 13y agoHas it been confirmed that the Feds are in possession of the wallet(s)? In that case Ulbricht is well and truly boned. If they don't have this data, then this filing is just the first round in the very long game that will determine how much jail time Ulbricht or any other alleged SR operator will serve, and how much money they will have left over afterward. In any case, those SR customers who had BTC stored there are out of luck.