The Frankfurt Prosecutor General’s Office announced a partnership with Bankhaus Scheich to legalize and resell the confiscated cryptocurrency, in which assets worth € 100 million were sold.
Since cryptocurrencies are associated with cybercrime, they are considered “dirty coins” and cannot be traded on exchanges. Therefore, the German prosecutor’s office together with Bankhaus Scheich have developed special mechanisms for its legalization. Senior Attorney Jana Ringwald said:
“Cryptocurrencies have become a means of payment for cybercriminals. Therefore, a professional approach requires not only their confiscation, but also their subsequent implementation. For the legalization of confiscated cryptoassets, we have developed a unique solution that is legally secure and market-oriented. ”
The established “clearing” procedure ensures that trading partners are informed that cryptocurrencies have returned to legal circulation and have been declared “clean” by the state, that is, they can be used for trading and exchange operations.
At the stage of testing mechanisms for legalizing confiscated cryptocurrency, Bankhaus Scheich sold at an auction digital assets worth € 100 million (about $ 113 million), which were seized in a criminal case against drug dealers. Boris Ziganke, Member of the Management Board of Bankhaus Scheich, said:
“Selling such a large number of cryptocurrencies in a short period of time is difficult and almost impossible with classic platforms aimed at private investors. The fact that we have been able to do this without market turmoil is a testament to our leading position in Germany in the field of cryptoasset trading. ”
This is not the first time that the German authorities have opted for a non-standard method of managing confiscated cryptoassets. So, in October, the Ministry of Justice of the state of North Rhine-Westphalia put up for auction 215 seized bitcoins at a reduced price.
