One of the drawbacks of the crypto market is that it is being used by criminals ranging from those found in the dark web to those who are laundering money. For this reason, regulators are keeping an eye how the cryptocurrencies are being used, and who are using cryptocurrencies.
Recently, it was reported that Bamberg cybercrime specialists have sold more than 1,000 Bitcoin and other digital currencies since February 2018. It has amounted to more than $13.9 million.
According to reports, the move by authorities considered an emergency sale. It is usually reserved for perishable goods. However, since Bitcoin and other cryptocurrencies are bearish lately, government officials are worried that it could further depreciate. As for the breakdown of cryptos that were sold, it includes the following:
- 1,320 bitcoins
- 1,399 Bitcoin Cash tokens
- 1,312 Bitcoin Gold tokens
- 220 Ether
These cryptocurrencies came from the Lul.to platform. It was selling copyrighted ebooks and audiobooks for low prices. The platform was used by around 30,000 individuals. In June, investigators from the CyberCrime Competence Center of the LKA Sachsen and the Central Office of Cybercrime Bavaria were able to arrest operators of the site. And from here, investigators gained access to the cryptocurrencies after the officials of the website decided to simply cooperate with authorities.
According to the state prosecutor, “Since all cryptocurrencies are exposed to risk of high price fluctuations or even total loss, an emergency sale was ordered by the Central Office of Cybercrime Bavaria”.
This can be considered a good move especially if authorities don’t really have any plans to HODL. In just a matter of six months, Bitcoin’s price from almost $20,000 dropped to $6,500 before rebounding to around $7,200 now.
Cryptocurrencies have some form of anonymity to its users. However, though there is no such thing as complete anonymity, there are some digital currencies today that specialize in hiding its user’s identity. Bitcoin isn’t exactly the best option in this kind of scenario. In fact, Japan recently ordered to have digital currencies that offer anonymity to its users to be delisted from a cryptocurrency exchange. This includes the like of Monero.
Next Biggest Sale
The next biggest sale in Germany was by Hessian Internet Investigators. It was in collaboration with the FBI and Europol. Here, they were able to confiscate crptos from Silk Road 2.0 and Hydra. The sale was at around $2.2 million during that time. It was also sold as an emergency sale as German authorities fear that the value would further go down.
There are many reasons why Bitcoin and other cryptocurrencies are currently down in value. Regulators are currently trying to take a closer look at how to deal with cryptocurrencies. And though institutional investors are now looking forward to join the crypto market, many are still hesitant without clear rules and regulations.
Considering the price swings, could this actually be a good idea by authorities? Or was it a better decision to HODL and wait until what transpires from the crypto market? Considering the risks and the possibility of declining value, it seemed that an emergency sale is a great idea.