Feds Get Signal To Sell 30,000 Bitcoins Seized From Silk Road
It was just a matter of time, US Feds finally got the green signal to sell off 29,655 bitcoins, worth about $25 million at the time of writing. According to Manhattan attorney’s office the forfeiture order was signed on Wednesday by U.S. District Judge J. Paul Oetken. These coins were seized from Silk Road servers and Feds also hold another 144000 coins which belongs to Ross Ulbricht aka Dread Pirate Roberts.
This could actually be good news towards legitimacy of cryptocurrencies, since prosecutors made it clear that bitcoins are equal to any other currency. “These bitcoins were forfeited not because they are bitcoins, but because they were, as the court found, the proceeds of crimes,” US Attorney Preet Bahara told the press.
Price Effect on the market ?
30,000 bitcoin is a good amount of coins to bring the prices on it’s knees, If the govt ever decides to convert coins into dollars then the market would really tank with all those coins being put onto the market at once.
Second option is to sell off by an auction to individual or institutional buyers. Auction seems to be the only option for Feds because there isn’t a single exchange which has a US govt stamp of approval.