The US government has missed billions of dollars by selling bitcoin cheaply

The US government has missed billions of dollars by selling bitcoin cheaply

These bitcoins are being seized by US regulators from high-tech crime-related cases.

According to CNBC, past crime-fighting activities have helped the US government raise huge amounts of cryptocurrencies. However, instead of being handed over to professional administrative units, these cryptocurrencies are all offered at even cheaper prices than the market.

In 2018, the US government sold 500 bitcoins to Riot Blockchain for 5 Million dollars.

That bitcoin is worth more now 23 Million dollars. Previously, in 2014, that country’s authorities liquidated 30,000 bitcoins to multi-billion dollar venture capitalist Tim Drapper for one price 19th Million dollars, equivalent to 1.3 Billion USD at current market prices.

US regulators have also seized the value of cryptocurrencies 56 Million dollars from the BitConnect fraud case. However, the proceeds from the liquidation will be returned to the victims.

“Governments are often a few steps behind criminals when it comes to innovation and technology. You don’t learn that in basic training. Perhaps in 3-5 years the authorities will update some guidelines or tweaks that teach you how to track cryptocurrencies or how to deal with them after they have been seized, “said Jud Welle, former cybercrime prosecutor.

The settlement of crypto-related case evidence typically goes through 3 stages including search / seizure, liquidation of assets and use of liquidation proceeds.

According to Koopman, director of the Cybercrime Department of the Internal Revenue Service, other agencies such as the Federal Bureau of Investigation, Homeland Security or the Federal Bureau of Investigation are often involved in investigating and solving high-tech cases …

“In the 2019 financial year we have approx. $ 700,000. In 2020 this number will increase to 137 Million dollars. In 2021 alone we will take approx 1.2 Billion USD“, Said Koopmann.

When the case closed, the judicial police were the authority responsible for auctioning the state’s cryptocurrencies. To date, this unit has seized and auctioned more than 185,000 bitcoins. Memory is estimated to store approx 8.6 Billion USD.

The US General Services Administration added cryptocurrency to the auction area earlier this year.

In July 2021, the Department of Justice made Anchorage Digital (based in San Francisco) responsible for overseeing the seizure or destruction of cryptocurrencies in criminal cases. This task had previously been assigned to BitGo.

In November 2020, the US government confiscated bitcoins worth First Billion USD in connection with the “Silk Road” case. Since the case is not yet closed, the exhibits are still sealed.

As soon as the case is resolved, the cryptocurrency will be auctioned, converted into fiat and divided among the states. This money is usually deposited into the Department of Justice’s Treasury Expropriation Fund or Property Expropriation Fund.

Koopman said the cryptocurrency seized in the group’s cases currently accounts for 60-70% of the Treasury Extortion Fund’s stake.