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During bull runs, it is common for government entities to sell stolen Bitcoins, with South Korean law enforcement agencies being the newest agency to sell a large volume of confiscated Bitcoin. The money in question had been stolen from a suspect in 2017 and was worth more than $10.8 million at the time of the auction.
The fiat sum realised from the auction, according to local sources released by the Suwon District Prosecutors Office, has been deposited in South Korea’s national treasury.
Authorities confiscated cryptocurrency funds from a jailed user of a pornographic website in 2017. At the moment, the blockchain was worth equivalent to $238K in total, having appreciated by 4,400% over the previous four years in detention.
The decision to sell was based on “a new cryptocurrency law that went into effect” on March 25. The new regulations compel local cryptocurrency exchanges and service providers to disclose their operations to Korea’s Financial Intelligence Unit. Strict legislation may have been implemented after the region’s local tax authority found over 2,400 tax evaders who used Bitcoin to conceal properties worth more than $32 million from the authorities.
There was no clear regulation dealing with seized cryptocurrency while the crypto assets were in detention historically, but the confiscated sum was placed in cold storage.
According to the prosecutor, Bitcoins were sold on an unspecified cryptocurrency exchange.
Earlier this year, the Finnish Customs agreed to issue Bitcoins. The crypto assets were seized in 2016 and were worth more than $75 million at the time of the auction. Meanwhile, on March 19, the US federal agency GSA auctioned off 0.7501 Bitcoin at a price that was 21% higher than the retail average. This came shortly after the French government agreed to auction off 611 BTC earlier that week.