Authorities reveal what the US government has done with all of this Bitcoin (BTC) and other crypto assets they confiscate from evil actors.
In recent interviews with CNBC, US officials say most of them were confiscated Cryptocurrencies liquidated and the proceeds then distributed among federal agencies.
Jarod Koopman, director of cybercrime for the Internal Revenue Service (IRS), says liquidations are done through fair market auctions, noting that the government never tries to “play with the market” or “with the Play Market “to sell crypto at its peak price.
“Basically, you line up to auction it off. We never want to flood the market with huge amounts that could then affect the price component. “
Proceeds from crypto auctions are usually paid into either the Treasury Forfeiture Fund or the Assets Forfeiture Fund of the Department of Justice, according to the report.
Koopman says federal agencies can then apply for access to the money to fund upcoming operations.
“We can make a request and say, ‘We’re looking for additional licenses or additional equipment,’ and then this is checked by the Executive Office of Treasury.”
After that, it is not exactly clear where the funds are going, as an anonymous Justice Department spokesman told CNBC he was “fairly certain” that there is no central database of seized digital assets.
Alex Lakatos, a Washington DC-based attorney who advises clients on confiscation from authorities, says:
“I don’t think there is a place where all of the cryptos that the US marshals own are there, let alone the various states that may have forfeited cryptos. It’s very much a hodgepodge.
I don’t even know if anyone in the government wanted to care how they would do it. “
Jud Welle, a former cybercrime prosecutor, says the U.S. government needs to update its playbook on dealing with crypto-crime.
“That’s not the kind of thing that would show up in your basic training … [In three to five years] Manuals are edited and updated with: ‘How to Approach Crypto Tracing’ [and] ‘How to Approach the Seizure of Cryptocurrencies.’ “
After previous Reports, the IRS seized $ 3.5 billion worth of crypto assets in fiscal 2021.
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Source: Crypto News Deutsch