American authorities have filed a civil action to procure the forfeiture of 20.2 worth of Bitcoin that is worth a maximum 2.4 million dollars. The coins are trading at 118,911 dollars per coin, and investigators believe they were bought from unlawful ransomware rackets that were run by the Chaos group.
Dallas FBI officials seized the cryptocurrency on April 15, linking it to a participant within a Chaos crew operating ransomware campaigns. Officials explained that its direct income from a criminal organization now awaits a definitive court ruling.
U.S. President Donald Trump already signed an executive order on 6th March mandating creation of a Strategic Bitcoin Reserve. The authorities are to solidify this reserve by relocating cryptocurrencies seized during criminal cases or civil asset forfeitures.
The Texas US Attorney’s Office confirmed that Texas’s Northern District court registered the civil lawsuit last Thursday afternoon. The federal prosecutors made it clear that development of the Strategic Bitcoin Reserve remains a priority as per the president’s new directive
Different blockchain trackers, including Nansen, Arkham and BitcoinTreasuries.NET, estimated American authorities possess approximately 198,012 Bitcoin in total. However, discrepancies emerged after journalist L0la L33tz revealed that the United States Marshals Service officially confirmed holding only 28,988 Bitcoin.
US States push laws for Bitcoin reserves
The journalist explained that the figure excludes coins seized by the FBI, DEA and Department of Justice, leaving additional custody accounts unrecorded. This statement triggered debate over how many Bitcoins remain under government possession and which agencies control their safekeeping.
The Arkham blockchain analysis recently uncovered that collectively, federal agencies are responsible for holding more than 198,000 Bitcoin across a number of holding addresses. According to their research, no agency sold or transferred bitcoin holdings during the last four consecutive months.
But critics say certain blockchain trackers are unable to distinguish between seized and entirely forfeited coins. They argue investigators are still probing certain amounts and cannot classify either as government property for sale.
Meanwhile, over thirty U.S. states drafted bills concerning forming personal reserves from Bitcoin during the past few years. Arizona, Texas and New Hampshire lawmakers already signed their corresponding bills, but some other proposals were defeated during votes by committees.
With disputes continuing, future contours of America’s strategic virtual money policy remain subject to review with authorities boosting reserves through high-profile seizures.
