German government sells $ 113 million in seized crypto to drug traffickers

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German authorities sold $ 113 million in seized cryptocurrency to drug traffickers earlier this year.

What happened: According to a report released on Wednesday by the Frankfurt prosecutor’s office, the seized assets were sold earlier this month and the proceeds from the sale were received by the Hessian regional government.

The Frankfurt Attorney General’s Anti-Cybercrime Unit turned to Bankhaus Scheich Wertpapierspezialist AG – an entity specializing in digital assets – to get the funds back into regular circulation.

“As cryptocurrencies are linked to crime, they are considered ‘contaminated coins’ and cannot be traded on traditional exchanges,” the bank said.

The processes they have in place serve to ensure that trading partners are notified that the currencies are back in legal possession and have been declared “clean”, allowing them to be sold.

The company plans to help clean up and return illicit crypto funds seized by the government in the future.

See also: Top 6 Altcoin investments in 2021 • DeFi & NFT

What else: Earlier this year, Germany introduced the “Fund Location Act” which allows certain funds to allocate up to 20% of their assets under management to crypto assets.

Early arrivals are likely to understand, according to a Forbes report Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) as the country’s first choice when awarding crypto due to their widespread adoption.

Price action: On Thursday morning at the release, Bitcoin was trading up 0.04% to $ 48,728.69 and Ethereum was trading down 0.94% to $ 3,955.96.

Photo of Executium on Unsplash


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