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U.S seizes $1.2bn worth of crypto in 2021, auctions them

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Cryptocurrency is not banned in the United States, but the U.S government has been tough on illegal activities in the crypto market, confiscating these digital assets and reselling.

According to the director of the Internal Revenue Service’s (IRA) cybercrime unit, Jarod Koopman, the U.S has seized more cryptocurrency in 2021 than previous years.

As of August, about $1.2 billion worth of cryptocurrency have been confiscated, while a year before, the value of the asset seized was $137 million, and in the year 2019, the amount taken off the hands of illegal marketers was $700,000.

Read also: Bitcoin whale’s $137m splash fails to lift crypto

As cryptocurrency popularity grows, the amount of the assets seized by the government rises, and it now accounts for 60 to 70 percent of the Treasury Forfeiture Fund.

This means crypto assets are the largest contributor to the Treasury Forfeiture Fund, and they are sold for cheap during an auction to provide funds for the running of the government.

“You basically get in line to auction it off. We don’t ever want to flood the market with a tremendous amount, which then could have an effect on the pricing component,” CNBC quoted Koopman.

In some instances the U.S auction some confiscated crypto. It sold 500 bitcoin in 2018 at about $5 million, which is now worth $23.4 million, to Riot Blockchain.

Billionaire investor, Tim Draper, also bought 30,000 BTC for $19 million in 2014, but the value of the crypto asset is now around $1.3 billion.

The post U.S seizes $1.2bn worth of crypto in 2021, auctions them appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.

Source: NEWS

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