Over the past decade or so, countries around the world have resorted to seizing cryptocurrencies. The US government is at the forefront, boasting approximately $15.27 billion in crypto holdings.
This sizable stash includes 212,847,000 BTC and 45,654,000 ETH.
The United States ranks first with $15.27 billion in holdings.
Silk Road is perhaps the most infamous case in which the US government seized approximately 144,336 BTC in 2013. Silk Road was an online black market known for using Bitcoin to facilitate the sale of drugs and other illegal goods.
Another popular darknet market called AlphaBay was also targeted by US authorities in 2017. The exact amount of virtual currency seized is unknown, but it was previously reported that the stash included tokens such as Bitcoin, Ethereum, and Monero.
Three years later, the U.S. Department of Justice has seized approximately $3.6 million worth of Bitcoin as part of an investigation into alleged money laundering and fraud involving cryptocurrency exchange Bitfinex and its affiliated stablecoin issuer Tether. did.
Close behind the United States is the British government, which holds 61,245,000 BTC (worth about $4.34 billion), according to data compiled by Arkham Intelligence.
Meanwhile, the German government currently holds 49,859,000 BTC, worth approximately $3.53 billion.
Notably, the Salvadoran government has emerged as an active participant, holding 5.718 million BTC worth approximately $405 million, primarily through active purchases.
Crypto asset seizure
Most of the crypto assets in these countries are confiscated for several reasons. This includes criminal investigations where virtual currencies are used for illegal activities such as money laundering, drug trafficking, terrorist financing, and cybercrime. Law enforcement seizes crypto assets as part of investigations to stop criminal activity and hold perpetrators accountable.
Governments may seize cryptocurrencies from individuals or businesses suspected of tax evasion by failing to report crypto-related income or transactions. Garnishment serves as a means to enforce tax compliance and ensure that taxpayers meet 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. Foreclosures can occur if an entity fails to comply with these regulations or engages in fraudulent activity.
