Over the past decade or so, countries around the world have resorted to seizing cryptocurrencies. The United States government stands at the forefront, boasting crypto holdings of almost $15.27 billion.
This substantial stash includes 212.847k BTC and 45.654k ETH.
US Leads with Holdings of $15.27B
Silk Road is perhaps the most infamous case where the US government seized approximately 144,336 BTC in 2013. Silk Road was an online black market known for facilitating the sale of drugs and other illegal goods using Bitcoin.
Another popular darknet marketplace called AlphaBay was targeted by the US authorities in 2017. While the exact amount of seized cryptocurrencies is not known, it was previously reported that the stash included Bitcoin, Ethereum, and Monero, among other tokens.
Three years later, the US Department of Justice seized approximately $3.6 million worth of Bitcoin as part of an investigation into alleged money laundering and fraud involving the cryptocurrency exchange Bitfinex and its affiliated stablecoin issuer, Tether.
Following closely behind the US is the British government, which holds 61.245k BTC, valued at around $4.34 billion, according to the data compiled by Arkham Intelligence.
Meanwhile, the German government currently possesses 49.859k BTC, with an approximate value of $3.53 billion.
Notably, the Salvadoran government has emerged as an active participant, with holdings of 5.718k BTC, valued at approximately $405 million, largely attributed to proactive purchases.
Crypto Seizure
The majority of these countries’ crypto assets stem from confiscation for several reasons. This includes criminal investigations during which cryptocurrencies are used in illicit activities such as money laundering, drug trafficking, terrorism financing, and cybercrime. Law enforcement agencies seize crypto assets as part of investigations to disrupt criminal operations and hold perpetrators accountable.
Governments may seize cryptocurrencies from individuals or businesses suspected of evading taxes by not reporting crypto-related income or transactions. Seizures serve as a means to enforce tax compliance and ensure that taxpayers fulfill their obligations.
Additionally, cryptocurrency exchanges and other platforms may be subject to regulations related to anti-money laundering (AML) and know-your-customer (KYC) requirements. Seizures may occur when entities fail to comply with these regulations or engage in fraudulent activities.
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