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US To Auction $1.6 Million Worth of Bitcoin From Various Cases (reuters.com)
An anonymous reader shares a Reuters report: The U.S. government said on Monday it plans to auction over 2,700 bitcoin that were forfeited during several cases, including the prosecution of the creator of the online black market known as Silk Road. The U.S. Marshals Service said that the online auction would be held on Aug. 22, and that potential bidders must register by Aug. 18. The bitcoin are worth about $1.6 million, according to the Bitstamp exchange. The auction is the latest by the Marshals Service of the digital currency. It completed four prior auctions from June 2014 to November 2015 of bitcoin seized during the prosecution of Ross Ulbricht, who authorities say ran Silk Road.
Um, no. Due to the fluctuation of Bitcoin and the extended settlement time of Federal auctions you wouldn't be very smart to bid over 60-70% of value.
Coin Washing service would quickly dissolve any link to you. Which is exactly what I would do. Once the Coins are disassociated with any person, they are useless.
Agent K: A *person* is smart. People are dumb, stupid, panicky animals, and you know it.
Which seems like further reason for the Feds to liquidate it themselves rather than auctioning it off. Probably some arcane part of the law I guess, or just stupid bureaucracy.