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FEDS Seize $28 million in BITCOINS from alleged Silk Road Operator

FEDS Seize $28 million in BITCOINS from alleged Silk Road Operator

James O’Toole
CNN Money
October 26, 2013

NEW YORK (CNNMoney)
Federal officials announced the largest-ever seizure of bitcoins on Friday night, securing $28 million worth of the digital currency from the alleged owner of the online drug marketplace Silk Road.

Bitcoin, which allows users to conduct online transactions while obscuring their identities, was the only currency accepted on Silk Road. Law enforcement officials arrested the site's alleged proprietor, Ross Ulbricht, earlier this month, and have shuttered the operation.

Ulbricht faces a potentially lengthy prison sentence for charges ranging from narcotics trafficking to computer hacking to money laundering. Federal officials have now seized over $33.6 million worth of bitcoins in connection with the case.

"This seizure sends a clear notice to those who think they can commit crimes and conceal the fruits of their criminal activities in digital anonymity," IRS Special-Agent-in-Charge Toni Weirauch said in a statement.

Read more: http://money.cnn.com/2013/10/25/news/economy/bitcoins-silk-r...




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Send "a clear notice"?

"This seizure sends a clear notice to those who think they can commit crimes and conceal the fruits of their criminal activities in digital anonymity,"

For there to be "a clear notice" they would have to demonstrate that there is actually criminal activities and that they are upholding the law. The law requires presumption of innocence and proof beyond all reasonable doubt based on the accusation of accuser alleging actual injury, so the only message that has been sent is that there is a lawless gang of criminals claiming to be "government" who are terrorizing people who wish operate independently of their criminal gangsterdom.

The most powerful Law of Nature is Time. It is finite and we all will run out of it. Use this Law to your advantage, for it offers you infinite possibilities...

The government sure hates competition

Dont get in their way.

Unless of course

The Silk Road was already being run by a certain agency that we won't mention

Time for a stealthy night raid of the IRS...

...and their agents' houses. Arrest them for the crimes against the constitution and the American people that they've committed.

Seize all assets, property, accounts, etc. Before any trial. Search all their papers, documents, personals, etc., until you find something to bust them all for. RICO Act.

Give them a taste of their own medicine. Wonder how they'd like it?

PEOPLE OPPOSING TYRANNY - Real Grass Roots!
Are you a POT or a PET - Person Embracing Tyranny?

The time is approaching when it will be life threatening...

...to be an IRS employee, or "officers of the law" who continue to violate their oaths as they oppress the people.

Do you hear the people sing?
Singing a song of angry men?
It is the music of a people

Who will not be slaves again!
When the beating of your heart
Echoes the beating of the drums
There is a life about to start
When tomorrow comes!

For an experience with the Spirit of Liberty / God, watch this, where you will hear in different languages the language of freedom:

http://youtu.be/gpDbvlAI_A0

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a rEVOLution before tomorrow morning." - Henry Ford

thanks for sharing that...

check this thread out, you might like it...

http://www.dailypaul.com/300666/practical-way-to-regulate-ci...

PEOPLE OPPOSING TYRANNY - Real Grass Roots!
Are you a POT or a PET - Person Embracing Tyranny?

Read it already.

Lawmanjed, I make a point to read your stuff when I see it. Thanks for your quality posts.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a rEVOLution before tomorrow morning." - Henry Ford

What happens to the value of Bitcoins

When the FBI cashes in $80 billion dollars worth of it?
I'm really trying to understand Bitcoin! I'm interested, but gun shy!

TxRanger

You're not going to understand Bitcoin in only a few minutes. It is very complex and there are many aspects to it. There is also a lot of misinformation about it.

As someone that has been around it a long time I can tell you a few things for certain:

1. Bitcoin is NOT a recommended replacement for protecting wealth. Use PMs for that.

2. Bitcoin CAN do some things better than PMs or even cash, like fast, cheap international, unblockable transfers. It can also be used anonymously if you learn how.

3. You're probably safe putting less than say 3% of your wealth into it, but only do what you are personally comfortable with (hint: you need to understand it).

4. You can get expert level answers from the oldest and most popular Bitcoin forum https://bitcointalk.org

...

"It can also be used anonymously if you learn how."

As we know from experience. The internet is tracked and traced. Nothing is anonymous.

All rights reserved and no rights waived.

...

Bitcoin is a digital ponzi scheme. Bitcoin is a software program. Every transaction is logged on a global register forever. Bitcoin is gambling.

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lol

You can almost say the same about your dollar bank account.

...

Built on the absolute same premise and reasoning. Thumb's up.

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The difference

with Bitcoin though is everything is transparent, and nobody can change the inflation rate (unless everyone agrees, which won't happen).

...

Inflation is a sin. Some would call it usury which is also forbidden. Bitcoin is not immune from price fixing. Inherently useless and this should be enough for any normal person to understand.

It cannot be measured or weighted in real terms.

All rights reserved and no rights waived.

(btc) will likely remain on the FBI's hard disks indefinitely.

it's still not clear exactly what the fbi has "seized". it sounds like all they have is his wallet file which is worthless without his password. however it can still be used by dpr or anyone with his private key and password.
http://www.zerohedge.com/news/2013-10-26/feds-confiscate-rec...

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
My ฿itcoin: 17khsA7MvBJAGAPkhrFJdQZPYKgxAeXkBY
http://www.dailypaul.com/303151/bitcoin-has-gone-on-an-insan...

emalvini's picture

Satoshi Nakamoto?

Satoshi Nakamoto?

Satoshi Nakamoto is the pseudonymous person or group of people who designed and created the original Bitcoin software, currently known as Bitcoin-Qt.
His involvement in the original Bitcoin software does not appear to extend past mid-2010.

Read more: https://en.bitcoin.it/wiki/Satoshi_Nakamoto

...

Satoshi Nakamoto has a real name; "Keyser Söze". An AI computer program from the future that goes back in time to save future generations of robots from the human exterminators who have invaded their homeland.

All rights reserved and no rights waived.

emalvini's picture

Remember This One Put Out By Lew Rockwell

Remember This One Put Out By Lew Rockwell

Many economists and financial commentators believe that in the unregulated market of the internet economy, new forms of money can be created that bypass central-bank and government supervision. The latest development is the emergence of a new electronic means of exchange, Bitcoin (BTC). Bitcoin was launched on January 3, 2009 by its inventor, a programmer called Satoshi Nakamote.

The basic idea behind Bitcoin is to create, by means of a mathematical algorithm, a digital good that is scarce and fungible.

Nakamote devised a software system that enabled people to obtain bitcoins as a reward for solving complex mathematical puzzles. The resulting coins are then used for
online trading
. Nakamote also arranged that the number of bitcoins can never exceed 21 million.

Some experts maintain that Bitcoin will displace the existent fiat money and will usher in a new era of
free banking
, which will finally put to rest the menace of inflation.

Unfortunately, this is a pipe dream. Electronic money will not replace fiat paper money. The belief that it can stems from a failure to understand the nature and function of money and how it emerges on the market.

To see where this view goes wrong, let’s first see how money comes about. Money emerges out of barter conditions that permit more complex forms of trade and economic calculation. The distinguishing characteristic of money is that it is the general medium of exchange, evolved from private enterprise from the most marketable commodity. On this Mises wrote,

There would be an inevitable tendency for the less marketable of the series of goods used as media of exchange to be one by one rejected until at last only a single commodity remained, which was universally employed as a medium of exchange; in a word, money. (The Theory of Money and Credit, pp. 32-33)

In short, money is the thing for which all other goods and services are traded. Furthermore, money must emerge as a commodity. An object cannot be used as money unless it already possesses an exchange value based on some other use. The object must have a pre-existing price for it to be accepted as money.

Why? Demand for a good arises from its perceived benefit. For instance people demand food because of the nourishment it offers. With regard to money, people demand it not for direct use in consumption, but in order to exchange it for other goods and services. Money is not useful in itself, but because it has an exchange value, it is exchangeable in terms of other goods and services.

The benefit money offers is its purchasing power, i.e. its price in terms of goods and services. Consequently for something to be accepted as money, it must have a pre-existing purchasing power: a price. This price could have only emerged if it had an exchange value established in barter.

Once a thing becomes accepted as the medium of exchange, it will continue to be accepted even if its non-monetary usefulness disappears. The reason for this acceptance is that people now possess previous information about its purchasing power. This in turn enables them to form the demand for money.

In short the key to the acceptance is the knowledge of the previous purchasing power. It is this fact that made it possible for governments to abolish the convertibility of paper money into gold, thereby paving the way for the introduction of the paper standard. Again the crux here is that an object must have an established purchasing power for it to be accepted as general medium of exchange, i.e. money.

In today’s monetary system, the core of the money supply is no longer gold, but coins and notes issued by governments and central banks. Consequently coins and notes constitute the standard money we know as cash that are employed in transactions. Notwithstanding this, it is the historical link to gold that makes paper money acceptable in exchange.

Observe that a bitcoin is not a thing; it is a unit of a non-material virtual currency. A bitcoin has no material shape; hence from this perspective the notion that it could somehow replace fiat money is not defendable.

Bitcoin can function only as long as individuals know that they can convert it into fiat money, i.e. cash on demand (see, e.g., Lawrence H. White "The Technology Revolution And Monetary Evolution," Cato Institute’s 14th annual monetary conference, May 23, 1996).

Without a frame of reference or a yardstick, the introduction of new forms of settling transactions is not possible. On this Rothbard wrote,

Just as in nature there is a great variety of skills and resources, so there is a variety in the marketability of goods. Some goods are more widely demanded than others, some are more divisible into smaller units without loss of value, some more durable over long periods of time, some more transportable over large distances. All of these advantages make for greater marketability. It is clear that in every society, the most marketable goods will be gradually selected as the media for exchange. As they are more and more selected as media, the demand for them increases because of this use, and so they become even more marketable. The result is a reinforcing spiral: more marketability causes wider use as a medium which causes more marketability, etc. Eventually, one or two commodities are used as general media-in almost all exchanges-and these are called money. (Murray N. Rothbard, What Has Government Done to Our Money?)

It was through a prolonged process of selection that people had settled on gold as the most marketable commodity. Gold therefore had become the frame of reference for various forms of payments. Gold formed the basis for the value of today’s fiat money.

Besides, Bitcoin is not a new form of money that replaces previous forms, but rather a new way of employing existent money in transactions. Because Bitcoin is not real money but merely a different way of employing existent fiat money, obviously it cannot replace it.

The fact that the price of bitcoins has jumped massively lately implies that people assign a high value to the services it offers in employing existent money. This is no different from the case when in a country which imposes restrictions on taking money out people will agree to pay a high price for various means to secure their money.

Summary and conclusion

Contrary to the recent hype, we hold that Bitcoin is not money but rather a new way of employing existent money in transactions. The fact that the price of bitcoins has jumped massively lately implies that people assign a high value for the services it offers and nothing more.

Frank Shostak is an adjunct scholar of the Mises Institute and a frequent contributor to Mises.org. He is chief economist of M.F. Global.


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http://www.lewrockwell.com/2013/04/frank-shostak/the-bitcoin...

What about this, Bad Wine?

http://www.dailypaul.com/301686/fbi-unable-to-seize-600000-b...

That one was 80 million which they were unable to unlock...

Potential Annualized National Debt Allowance - a look back at 40 years of PANDA diplomacy next Pandaline

emalvini's picture

This Could A Hit CIA Piece Designed To Discourage Bitcoin Use

Let me speculate by stating that those that are running things DO NOT want anyone to think that Bitcoins may a viable way to bypass the 'Fiat System'

...

Well those that are running things can easily buy the entire Bitcoin market many millions of times over. I could equally speculate that this is a CIA piece designed to make you believe Bitcoin have inherent value.

All rights reserved and no rights waived.

emalvini's picture

The Media Does It All The Time

Didn't they make americans believe that the teleprompter and cheat was something when he was and is a big fat zero...

Personally, 'll have nothing to do with anything, including bitcoins, that have no intrinsic value, such as Gold, Silver, Platinum, Palladium or Copper...

...

I have copper. It's heavy. Everyone thinks I'm crazy. However I did find someone to loan US dollars using my copper as collateral.

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Speculation

We don't know exactly how much Ulbricht was holding, or how he was holding it. The best guess based on public statements is the FBI thinks he had about 80 million worth in an encrypted wallet, but there could be more than one wallet/computer for example.

If he was sloppy enough to get caught it doesn't surprise me the feds are having some success seizing the bitcoins.

They ain't gonna find my nickles

I didn't draw a map and they don't even know I got em.

If I disappear from a discussion please forgive me. My 24-7 business requires me to split mid-sentence to serve them. I am not ducking out, I will be back later to catch up.

...

Sounds like Adam Kokesh needs some tips from you. I buried my gold so well. I don't even think I can find it. I guess I'll have to wait for that mail from the past to catch up with me in the future.

Blahaha - I love your post.

All rights reserved and no rights waived.

They ain't gonna find my dimes or bitcoin wallet flashdrive

I didn't draw a map and they don't even know I got em.

btc can be taken offline (deleted from your computer) and put in "cold storage" on a flash drive/cd/dvd on buried along side your gold etc.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
My ฿itcoin: 17khsA7MvBJAGAPkhrFJdQZPYKgxAeXkBY
http://www.dailypaul.com/303151/bitcoin-has-gone-on-an-insan...

I can buy a chicken from the local...

With nickles I can buy a chicken from the local neighbor raising chickens. He is going to look at my thumb drive as the piece of plastic that it is and I will go hungry. A bird in hand is better than two in the bush.

If I disappear from a discussion please forgive me. My 24-7 business requires me to split mid-sentence to serve them. I am not ducking out, I will be back later to catch up.

I can buy a chicken from the local...

With silver dimes I can buy a chicken from the local neighbor raising chickens.
i like diversity. when you get your chicken, remember not to put all your eggs in one basket.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
My ฿itcoin: 17khsA7MvBJAGAPkhrFJdQZPYKgxAeXkBY
http://www.dailypaul.com/303151/bitcoin-has-gone-on-an-insan...