US prosecutors ponder what to do with Silk Road Bitcoin hoard

“It all puts authorities in an unusual position, given their concerns about the way in which bitcoins and other digital currencies are used by criminals to circumvent regulations intended to prevent money laundering. By trading in bitcoins, the government could give the currency some legitimacy.  The US Marshals Service, which is in charge of liquidating such seized assets, will have to decide whether to sell the units on a Bitcoin exchange or find a private buyer, perhaps through an auction.  A spokeswoman for Preet Bharara, the US attorney for New York’s southern district, said on Friday that the government is still trying to decide what to do with the forfeited bitcoins.”

http://www.theguardian.com/technology/2014/jan/18/us-prosecutors-seized-bitcoin-hoard

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