Where do confiscated cryptocurrencies go?

Governments in a large number of countries around the world, specifically in the United States of America, confiscate cryptocurrencies. Recently, for example, the United States confiscated $21,000 worth of cryptocurrencies. Where did this money go?

The United States sells these cryptocurrencies through open auctions. Just as assets that are confiscated from their owners when crimes related to them are committed are sold.

The “Cybercrime Unit” in the “Internal Revenue Service” in America was able to confiscate digital currencies worth 1.2 billion US dollars during the year 2021 alone.
As Jarod Koopman, the unit’s director, described it, holding onto cryptocurrencies is like holding onto cars, boats, or high-value assets in general.

Cryptocurrency confiscation

Koopman described the cybercrime team as atypical agents. They have their badges, and weapons, and enforce the law but with an additional job, which is dealing with cryptocurrencies.

According to what he told CNBC, the unit was able to confiscate digital currencies worth 700 thousand of US dollars in 2019. The amount reached 137 million US dollars in 2020, and the value of the currencies confiscated in 2021 reached 1.2 billion US dollars.

Numerous interviews were conducted with former federal agents in the United States. According to them, the country does not plan to back down from pursuing and confiscating digital currencies.
Cryptocurrency seizures have even outgrown their capabilities, to the point where they may seek private-sector support.

The pursuit of this type of currency began to gain importance after federal agents were able to shut down the Silk Road website in 2013. It was a site that offered a black market in which everything was sold.

The Silk Road website has been operating on the dark web for many years. What helped him continue was his reliance on Bitcoin and other digital currencies.
These currencies allowed outlaws to exchange illegal services for money very freely. Here, Bitcoin became a security risk.

Get and disposal of cryptocurrencies

At that time, the United States was able to acquire a wallet of 30,000 Bitcoins. But at this time the value of the coin was not what it is now, as these coins were sold for 19 million US dollars. While its value currently exceeds one billion.

There are currently three major junctures in the cryptocurrency resistance process in the United States. The process begins with prosecution and confiscation, then monetization and sale of cryptocurrencies, and finally the repurposing of those funds.

Police departments in the United States, known as U.S. Police, are The Marshals Service is responsible for the seizure and then sale process. To date, it has managed to confiscate 185,000 Bitcoins, which is currently worth $7,185,344,500.

Ultimately, upon completion of the prosecution, confiscation, and sale processes, the realized amounts are deposited to two parties: the Treasury Confiscation Fund first and the Asset Confiscation Fund affiliated with the Ministry of Justice second.

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