Thursday, January 27, 2022

German Prosecutors Hire Local Bank to ‘Clean’ Seized Crypto Worth $113 Million – Featured Bitcoin News

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German prosecutors have employed a financial institution to “clean” cryptocurrency seized in legal circumstances. “As the cryptocurrencies are related to crime, they are considered ‘contaminated coins’ and cannot be traded on mainstream exchanges,” the financial institution stated.

Bank Hired to Clean Cryptocurrency Seized in Criminal Cases

The anti-cybercrime unit of the Frankfurt General Prosecutor within the German state of Hesse has reportedly employed Bankhaus Scheich Wertpapierspezialist AG to “clean” cryptocurrencies value about 100 million euros ($113 million), Bloomberg reported Wednesday. The cash had been seized in a legal case involving three drug sellers.

Noting that seized crypto will return to common circulation after cleansing, the financial institution defined:

As the cryptocurrencies are associated to crime, they’re thought of ‘contaminated coins’ and can’t be traded on mainstream exchanges.

The cleansing course of established by Bankhaus Scheich “ensures that trading partners are informed that the currencies are back in legal possession and have been declared ‘clean,’ allowing them to be sold,” the publication conveyed. However, the Frankfurt-based financial institution didn’t present additional particulars of the method.

Bankhaus Scheich famous that the seized cryptocurrency was offered in a single week earlier this month. The proceeds will now be transferred to the state authorities finances.

The prosecutors and the financial institution stated they may cooperate in future legal circumstances to put confiscated cryptocurrencies again into the markets.

Several folks on social media discovered the transfer by the German authorities fascinating. For instance, podcaster Joe Weisenthal tweeted:

It’s fascinating that governments are within the service of, basically, reverse laundering crypto. They take tainted crypto (that was seized in legal circumstances, and as such isn’t traded on exchanges) after which wash it in order that it will possibly commerce freely once more available on the market.

What do you consider the German authorities hiring a financial institution to “clean” seized cryptocurrencies? Let us know within the feedback part under.

Kevin Helms

A pupil of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source techniques, community results and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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