reply on: If The US Wanted To Build A Bitcoin Reserve, How Would It? \ stacker news ~bitcoin

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43 sats \ 9 replies \ @grayruby 19 Jul \ on: If The US Wanted To Build A Bitcoin Reserve, How Would It? bitcoin

Easy. Transfer the Bitcoin the Justice department holds from seizures to the US treasury. Done.

I think there is a law against it. All seized assets eventually have to go to auction.

I am sure they can find a way around it if they really wanted to.

I dont know, they could just bid on them if they really want them. Its not actually their assets. They cant legally keep them.

34 sats \ 3 replies \ @grayruby 20 Jul

If it’s not legally their asset why are they allowed to auction them and keep the proceeds. Where does the money go when the justice dept auctions assets?

63 sats \ 2 replies \ @Satosora 20 Jul

I dont want to sound like an ahole, but I am not sure on this. I think the department that seizes it gets a percentage of it put into their budget?

33 sats \ 1 reply \ @grayruby 20 Jul

I wasn’t trying to be a smart ass with my question. Sorry if it came off that way. I am from Canada I don’t know how any of it functionally works. I assumed auction proceeds would just go directly to the treasury which would effectively be the same as sending the bitcoin to the treasury but I have no idea. You could be right. They may legally need to auction it and the dept keeps the proceeds as part of their financing:

63 sats \ 0 replies \ @Satosora 20 Jul

Yeah, I am not 100% sure. I know they sold a bunch of the silk road bitcoins. They went to a Tim Draper.

63 sats \ 0 replies \ @jgbtc 20 Jul

I'm pretty sure they can do whatever the hell they want. They just need a judge to interpret it the right way and presto, it's all nice and legal.

13 sats \ 0 replies \ @anon 20 Jul

...and that's a good thing. We want all seized assets to be auctioned fairly so we know what they're actually worth.

Government can always use the USD from the sale to buy more BTC with only a few % of slippage. That's totally worth it to fight corruption.