- Tram Ho
Swedish authorities have just been forced to return nearly $1.5 million worth of Bitcoin to a drug dealer after the digital currency skyrocketed in value while he was serving a prison sentence.
According to the Telegraph, two years earlier, this criminal was arrested by Swedish law enforcement and seized 36 of his Bitcoins. All of these Bitcoins at the time cost about $136,000, which equates to a price of $3,700 per Bitcoin.
At that time, prosecutor Tove Kullberg successfully argued that these drug criminals should be stripped of the Bitcoins he obtained from illegal activities. However, Ms. Kullberg only suggested taking away the equivalent of the seized Bitcoins – not expecting that the price of this digital currency could fluctuate so much over the past two years.
Up to now, Bitcoin is trading for about $ 49,500, more than 10 times higher than when this criminal was arrested. This also means that the value of 36 Bitcoins seized two years ago is now almost 3 Bitcoins.
So, when the criminal was released, the authorities planned to auction off all of his 36 Bitcoins, but Kullberg’s argument in the trial two years earlier meant that the authorities were only allowed to collect the money. keep the equivalent of his 3 Bitcoins only.
In addition, the authorities must return to him 33 previously seized Bitcoins – equivalent to $ 1.6 million at the present time – even though the assets are proven to be formed from activities. illegal.
Witnessing a criminal being released from prison with a huge amount of money in hand, Ms. Kullberg also regretted saying that this was ” unfortunate in many ways .”
“ The lesson from this is to have the Bitcoins seized, that the profit from the crime is 36 Bitcoins, no matter how much it was worth at the time .” Ms. Kullberg added. ” It led to consequences that I could not have imagined at the time . ”
The prosecutor also added that this case is the first time in the country’s judicial history involving the seizure of cryptocurrency by criminals and so they have no prior precedent to assist. for decision making.
“ I think we should invest in an internal training program within the administration, as crypto is going to be a factor we have to deal with to a much greater extent than we do now .” Ms. Kullberg told Swedish Radio. “The more we increase understanding in the organization, the less mistakes we will make .”
Cryptocurrency-related crimes are causing concern among regulators and companies. Most recently, the Bank for International Settlements has criticized cryptocurrencies for their role in illicit activities.
Consult Business Insider
Source : Genk