U.S. authorities made 250% profit from the sale of confiscated cryptocurrency
29.04.2021 | auglovoi
In 2018, New Jersey’s Monmouth government seized about $57 000 worth of bitcoins from drug dealers at the price of online exchanges at the time. This year, authorities held an auction to sell the seized funds. Although the bidding price fell short of current prices, the government was able to make an additional about 250% profit - the sale amounted to $198 000.
According to the district attorney’s office, they are trying to keep up with the times and are adapting their operating principles to the changing realities, including the crypto industry. By filing a lawsuit to seize criminally obtained bitcoins, the prosecutor’s office has set a precedent that allows it to talk about creating an effective template for similar situations. This makes the cryptocurrency industry more transparent and the use of digital assets for criminal purposes, particularly in the area of concealing proceeds, more difficult.
However, the first confiscated coins of the first cryptocurrency are still on the balance sheet of the United States authorities. Since their seizure, their price has increased more than sixfold and currently stands at approximately $1 250 000.
While this precedent may seem somewhat negative for cryptocurrencies, it has had an undeniable impact on the acceptance of the field of free digital assets. The confiscation process can be seen as part of industry regulation, making bitcoins more understandable to authorities and regulators.