Reuters - US Govt Auctions Confiscated Bitcoin
Does anyone else find it a bit bizarre that the US Govt is suddenly in the Bitcoin business auctioning off Bitcoin it has apparently freed from its unlawful custodians? It's a very slippery slope when someone decided on a law, executes the law, and is allowed to make profit on it.
At the same time, recent hacking events against Bitcoin Exchanges have seem people's accounts plundered with no recourse available to recover their Bitcoin. There is no insurance on these holdings as yet, and it all relies on the inherent security of the system. As a Libertarian, I'm wondering what's preventing a government from using its resources to hack into an exchange, plunder Bitcoin, then auction it off after a while. Can some of the Bitcoin experts here comment on that?
