The use of the term "seize" implies that the Feds were able to get a hold of the coins without the owners consent. However, while no exact details have been released, the prevailing thought is that it was done through a sting operation where the individual willingly sent the bitcoins to the Feds and they are now keeping them, thus the "seizure."

Of course, the histrionic girls on this site would have you believe that the Feds used some technological magic to go in and take the bitcoins from his wallet without his consent.

ETA: And in case LSURussian is right in his assessment, then perhaps another possible scenario is that the Feds physically seized a computer where the bitcoins were stored. However, if they were able to "seize" them with that method, that would mean that the owner did not encrypt his wallet.

But there are no details being released as far as I know, so LSURussian shouldn't be speaking so assuredly.

This post was edited on 7/9/13 at 3:35 pm

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Posted by LSURussian

Member since Feb 2005

127243 posts

Posted on 7/9/13 at 3:35 pm to WikiTiger

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Posted by Poodlebrain

Way Right of Rex

Member since Jan 2004

19860 posts

Posted on 7/9/13 at 3:49 pm to WikiTiger

quote:
The use of the term "seize" implies that the Feds were able to get a hold of the coins without the owners consent. However, while no exact details have been released, the prevailing thought is that it was done through a sting operation where the individual willingly sent the bitcoins to the Feds and they are now keeping them, thus the "seizure."

Funny, but law enforcement uses the same terminology when they bust people using traditional cash in sting operations. Money freely transferred is still reported a seized because that indicates there is no intention to return it to anyone connected with the bust.

Do you have evidence the government wasn't able to go into his wallet and take Bitcoins without his consent? To the best of my knowledge neither the feds nor the suspect have provided details of how the Bitcoins were seized. It could have been simply keeping the Bitcoins used in an attempted illicit transaction (most likely), or the feds could have figured out a the password used by the suspect to open his wallet (least likely but still possible). Which ever the fact that the Bitcoins were seized has got to lower the confidence of those contemplating using Bitcoins for illicit transactions.

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