[ChuckMcM]

So the '324 is FBI on phone handset' comment, is this the FBI transferring $40M from Silk Road wallets to some other wallet? Or is it something else?

Also one wonders what is done with the 'evidence' after the case. I could imagine the FBI simply deleting the wallets but does anyone know their actual policy?

[Tuna-Fish]

> I could imagine the FBI simply deleting the wallets but does anyone know their actual policy?

In the US, law enforcement gets to keep a portion of whatever they seize. You can bet your ass they will not destroy millions worth of assets -- entire departments will get bonuses for years for this.

Law requires them to liquidate the assets through auctions, they cannot simply sell them at an exchange, or set a price for them and sell them at that price. There are plenty of companies that specialize in organizing such events.

[wmf]

An exchange is an auction, but I'm sure there's some regulatory capture here that won't allow the government to use any existing exchange. There may be a business opportunity here.

[sp332]

"Regulatory capture" means the regulators are working with the regulated organization instead of controlling it.

[wmf]

Yes, that's what I meant. I suspect some government contractors have convinced the government that everything (e.g. selling seized property) needs to be done by specialized government contractors rather than normal businesses or by the government itself.

[shawabawa3]

> I could imagine the FBI simply deleting the wallets but does anyone know their actual policy?

Pretty sure whatever their policy is, it isn't "throw away $150million of seized assets"

[Cthulhu_]

Except that it's not $150 million of seized assets, it's a bunch of electronic money that could or would at one point potentially sell for approximately $150 million if there were enough buyers for the offered digital product.

What does the FBI or other agencies do with intercepted drug money and criminal possessions? Drugs get destroyed, that much I know, but not sure about the other stuff.

[dr_doom]

Like other seized assets they will get repurposed for other investigations. When the feds seize a boat, car, or home they either sell them or use them for operations, undercover and the like.[0]

I imagine the btc will be saved until the case is closed then try to be used for other investigations, I don't think the feds would try converting and selling it.

[0] http://www.justice.gov/jmd/afp/02fundreport/02_2.html

[bdonlan]

Why not convert it and sell it? Spending BTC doesn't destroy any evidence, you'll still have a record of the original BTC to trace. I imagine there is some legal procedure to go through before they can dispose of the assets, but I can't imagine them simply shredding the keys.

[dublinben]

In typical cases, money is sent to the U.S Marshalls, and then disposed of according to a judge's instructions. In this case, the FBI can't easily redeem the seized BTC for USD, so it will likely stay in evidence.

[femto]

If the FBI deleted the wallets, I could imagine someone privately keeping a copy of the crucial key digits. A nice little retirement nest egg for 30 years time, once this incident has been forgotten. If the bitcoins have been officially deleted, it seems reasonable that the government bureaucracy would then cease to be interested in them.

[dutchbrit]

Is't this relaties to sheep market?