The recently ended month of September saw the United Kingdom police auction off roughly USD 300000 worth of cryptocurrencies following their confiscation by the country’s Eastern region special operations unit, ERSOU. Since the year 2014, law enforcement agencies over the world have been engaging themselves in the auctioning of large sums of Bitcoin that have been seized during investigations. For some reason, governments find it appealing to have in storage digital assets and cryptocurrencies that were previously used in crimes, and entities like the United States Marshals have been auctioning thousands of bitcoins.

Despite the government’s negativity towards seized bitcoins and digital assets, a number of investors and even traders seem interested in bidding for the seized digital assets and cryptocurrencies. After law enforcement agencies made the arrest of one Ross Ulbricht and took down the Silk Road, the United States government officially became one of the ten largest bitcoin holders in the year 2013.

Following the Demise of the Silk Road, as it went offline, the US Marshals had a total of 173000 BTC that were seized from the operation, and soon after, the amount was set up for auction. During that time, many bitcoin enthusiasts had watched the confiscated Silk Road bitcoins move to two different addresses where they were stored, prior to the auctioning.

The first address had close to 30000 BTC and currently holds about 20 BTC. The US government’s other former whale wallet held 144000 BTC, but as of current only harbors 0.30 BTC.

In addition to that, the wallets were marked by the US Marshals in notes that said,” Silkroad seized coins” and “DPR seized coins.” The spokesperson for the US Marshals at the time, Lindzey Donahue, said to the press that the government agency was “moving the Bitcoin in preparation for a sale.”

Most government agencies have auctioned off nearly all of the cryptocurrencies and digital assets that they have been seizing from the proceeds of crime. However, there exists a rumor that Bulgaria was holding approximately 213000 BTC when the Bulgarian law enforcement agency seized the stash of cryptocurrencies from gangsters. This report has drummed up numerous critics with people speculating that Sophia is the most bitcoin wealthy capital in the world.

That notwithstanding, the Bulgarian media outlets have reported that the coins were sold almost immediately thereafter confiscation. Bulgaria’s finance minister, Vladislav Goranov, has allegedly insisted that the BTC was sold for 15000 euros each, with Deloitte working as the asset manager.

It cannot be ascertained, as of current, as to why many governments have sold off the bitcoins through auctions as most of them have seemingly not hoarded the assets. The situation is quite comparative than the rumors that float around concerning Venezuela Central Bank, which is said to be stockpiling cryptocurrencies. However, the trend persistent in the rest of the world is that massive amounts of cryptos have been sold by auction with the most recent sale by the United Kingdom’s ERSOU, serving as the best and latest example.

What's your reaction?
Leave a Comment