Prosecutors Sell 8.5m Bitcoin
3 min read

Prosecutors Rush to Sell $8.5m of Seized Bitcoin

By Editorial Team

It is not only Bitcoin traders that are taking notice of the incredible rise in price, but also law enforcement agencies.

This is particularly acute for the case when the law enforcement agency in question has seized a large stash of illicit Bitcoin.

The Bitcoin in question was part of a seizure of one of the largest opioid rings in the United states. The coins were used on the dark web in order to receive payments from buyers.

Profitable Loot

The coins were seized from a US Citizen called Aaron Shamo who was arrested in November 2016. He was charged with running one of the massive underground fentanyl distribution business.

At the time of the seizure, Bitcoin the coins were trading for about $727. This means that the haul by the law enforcement agency was worth about $500k.

However, since then we are all aware of the massive rally that Bitcoin has had over the year. Currently Bitcoin is approaching $20,000 so this would make the haul of the government worth a pretty penny at over $8.5m.

If we were to include the Bitcoin cash that has come as a result of the hardfork in August then the stash is closer to $10m in value.

Bitcoin Fire sale

The prosecutors in Utah are trying to sell the Bitcoin stash in order to make use of the proceeds. According to a spokesman for the attorney’s office, Melodie Rydalch:

For federal prosecutors in Utah, sales of seized assets like cars are routine, but bitcoin is new territory. The proceeds of the bitcoin sale will be held until the case is resolved, and then decisions will be made about where the money goes.

In criminal cases in the US, the government agency which was responsible for the seizure of the assets is entitle to the proceeds. In this case the agency in question was the Drug Enforcement Agency (DEA).

The agency was not only able to seize Bitcoin. When they raided the property in cottonwood heights, they also recovered over $1m in cash which was hidden in trash bags.

The accused is currently sitting in a Utah jail and has pled not guilty to the charges which include Money Laundering and possession of Fentanyl.

This is not the first time that a sale by law enforcement officials of illicit Bitcoin has occurred. Back in 2014, the U.S Marshal Service auctioned off 30,000 Bitcoin that were seized from the Silk Road market place.

At the time of the sale, the agents were able to make $48m from the sale which was made to the billionaire Tim Draper. However, this stash would now be worth over $540m.

Keep Calm and Hodl

With the lesson of the Silk Road coins in mind, one may wonder if it is indeed a wise decision for the prosecutors in Utah to be so eager to sell the coins. Although they may be worth quite a bit of money now, it is likely that they may continue to rise in coming weeks.

Hence, the agencies that have seized large amounts of cryptocurrencies from criminals should learn from Bitcoin holders the virtue of “Hodling”.

Editors at large. Posting the latest news, reviews and analysis to hit the blockchain.
View all posts by Editorial Team -> Best Crypto Deals ->

Latest Posts

Coinbase vs Binance
Binance vs Coinbase in 2022- Which is the BEST Crypto Exchange?
Coinbase vs Binance

Binance vs Coinbase in 2022- Which is the BEST Crypto Exchange?

May 19, 2022 30 min read
Central Bank of Norway Uses Ethereum Layer 2 Solution for CBDC Pilot
Central Bank of Norway Uses Ethereum Layer 2 Solution for CBDC Pilot
Central Bank of Norway Uses Ethereum Layer 2 Solution for CBDC Pilot

Central Bank of Norway Uses Ethereum Layer 2 Solution for CBDC Pilot

May 19, 2022 2 min read
Institutional Investors Dive Into Bitcoin as BTC Sees Record Capital Flows for 2022

Institutional Investors Dive Into Bitcoin as BTC Sees Record Capital Flows for 2022

May 19, 2022 2 min read
VeChain Foundation Inviting Terra Developers Over to VeChain After UST and LUNA Collapse
VeChain Foundation Inviting Terra Developers Over to VeChain After UST and LUNA Collapse
VeChain Foundation Inviting Terra Developers Over to VeChain After UST and LUNA Collapse

VeChain Foundation Inviting Terra Developers Over to VeChain After UST and LUNA Collapse

May 18, 2022 2 min read
G7 Countries WIll Discuss Crypto Regulation In Next Meeting
G7 Countries Will Discuss Crypto Regulation In Next Meeting: Report
G7 Countries WIll Discuss Crypto Regulation In Next Meeting

G7 Countries Will Discuss Crypto Regulation In Next Meeting: Report

May 18, 2022 3 min read
UK Crypto Investors Can Offset Losses Under New Tax Legislation: Report

UK Crypto Investors Can Offset Losses Under New Tax Legislation: Report

May 17, 2022 3 min read
European Central Bank Explores Anonymity-Focused CBDC In New Report

European Central Bank Explores Anonymity-Focused CBDC In New Report

May 17, 2022 3 min read

Related Posts

Central Bank of Norway Uses Ethereum Layer 2 Solution for CBDC Pilot
Central Bank of Norway Uses Ethereum Layer 2 Solution for CBDC Pilot
Central Bank of Norway Uses Ethereum Layer 2 Solution for CBDC Pilot

Central Bank of Norway Uses Ethereum Layer 2 Solution for CBDC Pilot

May 19, 2022 2 min read
Institutional Investors Dive Into Bitcoin as BTC Sees Record Capital Flows for 2022

Institutional Investors Dive Into Bitcoin as BTC Sees Record Capital Flows for 2022

May 19, 2022 2 min read
VeChain Foundation Inviting Terra Developers Over to VeChain After UST and LUNA Collapse
VeChain Foundation Inviting Terra Developers Over to VeChain After UST and LUNA Collapse
VeChain Foundation Inviting Terra Developers Over to VeChain After UST and LUNA Collapse

VeChain Foundation Inviting Terra Developers Over to VeChain After UST and LUNA Collapse

May 18, 2022 2 min read
G7 Countries WIll Discuss Crypto Regulation In Next Meeting
G7 Countries Will Discuss Crypto Regulation In Next Meeting: Report
G7 Countries WIll Discuss Crypto Regulation In Next Meeting

G7 Countries Will Discuss Crypto Regulation In Next Meeting: Report

May 18, 2022 3 min read
UK Crypto Investors Can Offset Losses Under New Tax Legislation: Report

UK Crypto Investors Can Offset Losses Under New Tax Legislation: Report

May 17, 2022 3 min read
Binance CEO Changpeng Zhao Doubts Terra’s Plans for a Fork

Binance CEO Changpeng Zhao Doubts Terra’s Plans for a Fork

May 16, 2022 2 min read
UK To Go Ahead With Stablecoin Regulations After Queen’s Approval
UK To Go Ahead With Stablecoin Regulations After Queen’s Approval
UK To Go Ahead With Stablecoin Regulations After Queen’s Approval

UK To Go Ahead With Stablecoin Regulations After Queen’s Approval

May 16, 2022 2 min read