Uh, if the government were trustworthy you might have a point worth making here, but as it stands the government is not and no one would accuse them of being so. The regulation you speak so reverently of is indeed great... until the regulators get captured and congress gets bought, then regulation becomes a tool of the corporations and special interests to block out competition and form monopolies. Regulation starts out as government controlling corporations and soon morphs into corporations controlling the government with the government becoming a feral dog they unleash on anyone who challenges them.

Let the bitcoin exchanges crash and burn due to corruption. It is a good thing. Lessons will be learned anew and better, stronger, more trustworthy exchanges will rise from the ashes. Bitcoin is a reset button in more ways than one and lessons will need to be learned again, but in the end a trustworthy system will emerge from the ashes of failure.

Ever tried. Ever failed. No matter. Try again. Fail again. Fail better.

The thing is though they no longer need a warrant for a legal search they just need "exigent circumstances". http://en.wikipedia.org/wiki/K... To put it another way: they don't really need a warrant.