The US government regularly holds auctions for Bitcoin, Ethereum, Litecoin, and other cryptocurrencies it has seized. Auctions started in a big way with the removal of Silk Road, a dark web marketplace that trades illegal products, in 2013. So, what is the US government doing and how is it hiding these BTCs?
The fate of the US government’s Bitcoin stock
For years, the US government has auctioned Bitcoin and other cryptocurrencies. The 500 Bitcoins he sold to Riot Blockchain for about $5 million in 2018 are now worth over $23 million. The 30,000 Bitcoins that went to billionaire venture capitalist Tim Draper for $19 million in 2014 is worth more than $1.3 billion today. The government has seized all that Bitcoin, as well as the usual assets that can be expected from high-profile criminal operations. They are all sold similarly. “It could have been 10 boats, 12 cars, then there were X Bitcoins,” said Jarod Koopman, head of cybercrime at the Internal Revenue Service (IRS).
The government’s cryptocurrency seizure and sale operation is growing so fast that it has enlisted the help of the private sector to manage the storage and sale of its token stock. According to Koopman, there are currently three main ports in the flow of Bitcoin and other cryptocurrencies through the criminal justice system in the United States. The first stage is search and seizure. Second, the liquidation of the raided crypto. Third is the distribution of the proceeds from these crypto sales.
During this takeover, multiple officials are involved to ensure proper oversight. This includes administrators who create the hardware wallets necessary to secure the seized crypto. “We only keep private keys at headquarters so they can’t be tampered with,” Koopman said. cryptocoin.com As we reported, in recent years the government has seized record amounts of crypto from criminals. As cybercrime increases, the government’s cryptocurrency vault is expected to inflate even more.
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