The 3.5 Billion BTC That Will Not Hit the Market Straight to Regulated Bidders

Flash Back:  Bitfinex was hacked in August 2016.  After the attack in August 2016, a hacker made away with more than 119,000 Bitcoins.  Bitfinex allocated losses of more than 30% to all of their customer accounts. Bitfinex then created and credited BFX tokens to customers at a ratio of one for every $1 lost.

Pomp SHARED:  The Department of Justice just announced that they have arrested two individuals and seized $3.6 billion of bitcoin related to the 2016 Bitfinex hack.

Community Response:  There is no procedure to “HODL” Bitcoin by the Treasury. They will sell it all as soon as they have all the paperwork in. Will take few months and then dump.

After all the trials etcetera are done, what will the US do with the 119,754 BTC? Ideally, the BTC would be returned into circulation.  So that people can acquire it. Since there is a limited amount, keeping ~120K BTC off the market isn’t ideal right?

Doesn’t matter what they do with it. Both would be good.  Hot take: These launderers are the ones who have been dumping since November. Only up from here.

They will sell OTC to highest regulated bidder with deep enough pockets.  These BTC won’t even hit the market.

The stolen BTC was blacklisted from all exchanges. This isn’t positive that 3.5 billion BTC is potentially back on the market.

US government owns 0.6% of BTC supply in 2022! Imagine when US gov owns 10% of Bitcoin supply. Shortest crypto winter on record.

Will Department of Justice become HODLERS now? No, they auction them. They’ve done it before.

Is Bitcoin pool getting smaller?  So, what now? It gets auctioned off? Used as funding for the Best Business Show?  They know where it is. That’s their definition of “seize”. Without the private keys, they have a picture of the BTC in question, and that is all.

United States needs to put this on it’s Balance sheet as a matter of national security:  Do they need to put it on the balance sheet? Is the bitcoin seized from the Silk Road on their balance sheet?

Wonder what DOJ will do with that BTC? New big whales? Bitcoin.  Well, If it was fiat money it would go back to its rightful owner?

We don’t know if they actually have it. Sometimes the government likes to claim they “seized” bitcoin just to maintain their illusion of power, when in reality, they just have the public key.

I don’t know enough about it, but wouldn’t that mean the US government officially recognizes Bitcoin as a legal tender?  They will dump it to devalue Bitcoin for illuminati fiat.

Shouldn’t these Bitcoins be returned to any owner that may be identified?  How was this actually done? No way.  The coins were just sitting on an Exchange, right? If not, did the couple just tell them the code to the hard wallet? Did they give them their seed phrase? If it’s no to both of those, the DOJ literally doesn’t have anything.

After arresting the hackers what will the Department of Justice do with 3.6 billion Bitcoin from the 2016 Bitfinex Hack?  Does that mean BTC dumps?  No why? No one said it’s being dumped on the market. It’s been auctioned in the past.

That’s good for regulations on crypto, means more safety. And good for owners, they HOLD since 2016.

This is in no way close to regulation of Crypto as regards security of funds. I expect the government to lay out stricter regulations to prevent not just individual scammers/hackers, but also companies who wants to take advantage of the “Blockchain craze.”

And in next week’s news the FED announces $3.6 billion dollars of Bitcoin has been added to the balance sheet – Seized.  This sound bearish – 3.6 billions can dump big time the market.

Bitfinex are they going to give you the Bitcoin back or finders keepers? If not, aren’t they going to want more hacks where they get to catch the robbers and keep the cash?  Over the past five years, Bitfinex has significantly improved its security systems.

Right.  Soon – you’ll see a report that they’ve destroyed that digital wallet or that it was “corrupted” so they couldn’t access the funds.

What happens to the coins now? Are they to be returned to Bitfinex or will gov try keep them as long as possible? It should be returned to the individuals from whom it was taken. Any other outcome makes no sense.  Anything else is unjust.