Digital currencies seized in the case of a multi-million dollar drug ground in late 2016 are to be sold in pursuit of a court order that was issued. The seized Bitcoin, with recent surge in the price of Bitcoin is now worth about $ 10 million.
The seized Bitcoin was in connection to the arrest of Aaron Shamo who was accused of operating a drug ring in a salt lake city suburb with his associate, Drew W. Crandal. This discovery was seen as the one of the biggest busts in the country’s history, according to a press report.
The duo were said to be selling illegally. State of Utah lawyers are facilitating the sales of the about 513 Bitcoins (BTC) and 513 Bitcoin cash (BCH) valued at $8.7 million and $ 949,000 respectively according to recent market prices. According to legal documents, Dale Kimball a U.S, district judge assented the trading of the digital currencies after a motion was filed for its sale by the prosecutors.
The court order reads:
“The BTC and BCH have been transferred to a government wallet. Due to the volatile market for cyrptocurrencies, the BTC and BCH risk losing value during the pendency of the forfeiture proceedings . . . For these reasons, the United States seeks an interlocutory sale.”
According to the directives digital currencies would be converted to U.S dollars after its sales, utilizing a number of business cryptocurrency exchange in about fifty coins or less in a bid to guide against loss or fraudulent activities. The returns made from the sales would be forwarded to the Treasury Forfeiture Fund Suspense Account.
The U.S authorities held a number of auctions of Bitcoin gotten from the now inactive black market, Silk Road back in 2015. The authorities finally acquired ownership of the money from these auctions in September after a extended battle with the incarcerated owner of the black market, Ross Ulbricht who sued for the proceeds of the auction.
Other countries such as South Korea have also auctioned confiscated Bitcoins obtained during investigation last year.