By now, most of us have heard stories about the large amounts of Crypto that have ended up in the hands of police, due to them coming from criminals. What many of us probably haven’t heard about is what the police are doing with these stashes.
In an original report by German newspaper, Der Tagesspiegel, it was reported that a team of lawyers in the German state of Bavaria have sold over 2930 Crypto coins that were part of a criminal investigation against an illegal e-book and audiobooks service.
Like others that have been prosecuted already such as the Silk Road, the Pirate Bay, and many other dark market sites, Lesen und Lauschen, which was the service under investigation, had been using crypto for payments. Therefore, once the proprietors were arrested and the site was shut down, the authorities traced their existing crypto holdings and confiscated them.
Subsequently, on May 28, which was almost a year after the arrests, the sale was reported to have gone through for $13.9 million. One of the most important points that comes from this is that this practice is not uncommon and it is also not an example of Cryptocurrencies being treated differently than anything else, like traditional money.
Coin Telegraph cites several examples like one in the USA this January, in which US Marshals ended up with over $40 million for 3,812 Bitcoins, after auctioning them off online. These particular Bitcoins had been seized in a large number of cases, one of which involved Shaun Bridges, who stole $800,000 worth of Bitcoin, back in 2015.
With all of these examples in mind, it could actually be argued here that this practice is good for the growth of the Cryptocurrency industry, at least due to the fact that it is a real-world example of Crypto being treated as a viable currency.
On the other hand, it’s not ideal for Crypto to continue to frequently be associated with criminal dealings as if it were used in such cases more than traditional money. Therefore, it could be said to be important to keep it all in perspective. Certain interests want to pan Crypto as a money laundering vehicle and even worse. When this is taken as true, it becomes even more important for the benefits of the industry at large, to be widespread and easily understandable.
By: BGN Editorial Staff