German Law Enforcement Collaborates With Bank To Redistribute Crypto
Officials in Frankfurt, Germany, have put previously seized crypto back into circulation. The officials came up with a system they believe to be unique to them in recirculating the crypto. In a press release today, the state of Hesse with the prosecutors revealed that they made the sale in just seven days ending on the 20th of this month.
The tokens sold exceed $100 million in value. However, prosecutors believed that officials could not sell the confiscated tokens because criminals fraudulently obtained them. So they created a process that will allow stakeholders to know that the tokens are now in the wallets of people that have obtained them legally and can now be put on sale legally.
The prosecutor’s office agreed with the German bank, Bankhaus Scheich, to make the sale possible. The prosecutor’s office, in their statement, revealed that the two have plans to work together for a long time to handle these kinds of issues. A member of the bank’s board, Boris Ziganke, said that what the bank achieved was commendable.
Ziganke said that mainstream exchanges could not achieve the speed of the sale on traditional platforms that he says cater mostly to retail investors. He also praised their ability to move the tokens without disrupting the price. Zikange asserted that it was proof of German ingenuity in the crypto trading space.
The head of digital assets and projects, Nils von Schoenaich-Carolath, revealed that the process was not simple. The official said this resulted from the sheer variety and volume of tokens involved. Nevertheless, they say they have formulated an accepted regulatory system to execute orders of this kind without destabilizing the market.
The representative of the Prosecutor revealed that cryptocurrencies had become the go-to for a lot of shady activities. Adding that, the tracking and seizure, and redistribution of stolen tokens required a lot of technical know-how. The recent sale was not the first time German law enforcement had adopted unique approaches to putting seized crypto back into circulation.
Bitcoin Auction
In October, German officials put seized Bitcoin on Auction. The auction saw thousands of new registrations on its platform within days of the event. The auction resulted from restrictions on officials from selling seized tokens in the open market.
Officials set the bidding price at just over $49k when the token was traded in the open market for about $61k. Things didn’t stay that way for long, however, as the first bidder went on to offer nearly $63k for the lot. As a result, the auction received a lot of traction, with a prosecutor stating at the time that with every fund recovery, they would continue to destabilize criminal structures.
Actions By The US Government
In the United States, with the rise of ransomware exploits, the government had to take the risks of the technology seriously. They have since recovered some of the Bitcoin associated with the colonial pipeline attack. In addition, in a unique move, the Biden administration released a document chronicling the government’s strategy to fight corruption.
The document above stated that the administration had set up a task force in the DOJ to combat crypto-related exploits. But, unfortunately, criminals have turned to crypto to cover their tracks in this decade. The governments are, however, not sleeping on their oars.
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