Quote from: gentlemand on February 05, 2020, 07:05:08 PM

Quote from: plvbob0070 on February 05, 2020, 04:47:41 PM

I have questions, what can you say about buying Bitcoin that was used in doing illegal activities? Does it have any differences with the usual thing we do? Does it have lesser value because it was from illegal activity or does it cost higher because of the bidding? And what does the government do after receiving money from the auction? Do they use it in a proper way or simply, do they add it to the government's asset?

Tim Draper, a major VC investor, bought 30,000 coins seized from the Silk Road. I'm sure he would have no trouble at all moving them on for just the same price as any other coin. They've basically been 'cleaned' by passing through government hands.

This lot don't release their sold prices. From hints from failed bidders it's usually slightly below the market rate but not significantly.

That only proves that failed bidders bid below the market rate. If anything, these bitcoins carry a premium for the same reason that "tainted bitcoins" carry a discount.

The fact that Tim Draper won every single lot in that Silk Road auction suggests he paid a premium.

Quote from: plvbob0070 on February 05, 2020, 04:47:41 PM

And what does the government do after receiving money from the auction? Do they use it in a proper way or simply, do they add it to the government's asset?

According to the USMS website:

Quote

Proceeds generated from asset sales are used to operate the [Asset Forfeiture] program, compensate victims and support various law enforcement efforts.