The Fed sold $ 19 million in Bitcoin profit from a scam in 2018
In 2018, federal agencies in the state of Ohio sold bitcoins obtained through a fraud.
Acting US attorney Bridget M. Brennan announced on Thursday (1/7) that the amount of bitcoins collected is up to almost $ 19.23 million. They were originally valued at around $ 2.88 million.
It is believed to be the largest foreclosure in the history of the Northern District of Ohio. Authorities did not say how or where the bitcoins were being sold.
The case involved a 37-year-old Toledo man, Mark Alex Simon, who forged the identities of Ohio, Michigan and Utah residents. Documents included a driver’s license and ID, and he was paid for in bitcoin.
Simon pleaded guilty to the conspiracy to launder money and deliver fake identification documents to a two-year prison sentence in June 2019.
Simon was investigated by police for forgery of ID cards back in 2008, but he was not charged.
In 2015, authorities tracked fake IDs found in a bar near Wittenberg University on a website created by Simon. Court documents say that after months of investigation, the police were able to link the forged cards to Simon and his staff.
Authorities ransacked Simon’s Toledo home, along with the homes of others involved in the case. They confiscated over 500 Bitcoins from Simon in a seizure proceeding.
In foreclosure cases, the proceeds are split between the federal agencies involved in the investigation and local police agencies and used to compensate any victims. Any remaining funds will be returned to the US Treasury Department.
According to News.Bitcoin