Gushiken Yona
Governments are tightening their grip on seized crypto, with Russia preparing to offload confiscated Bitcoin while the U.S. moves to audit its massive digital asset stockpile. The fate of billions in crypto now hangs in the balance, sparking market jitters and policy shifts worldwide.
Russia Moves to Liquidate Seized Crypto Assets
Russia’s Federal Bailiff Service is working on procedures to convert seized Bitcoin into state revenue, following a high-profile criminal case. Dmitry Aristov, head of the service, called Bitcoin “a problematic asset” at a recent government meeting, noting the challenge in liquidating it.
“Now we are working with the relevant authorities to develop a methodology for implementing this type of financial instrument,” Aristov said.
The push stems from the forfeiture of Bitcoin worth over 1 billion rubles linked to Marat Tambiev, a former investigator convicted of taking bribes from hackers. The court ordered the Bitcoin, allegedly acquired with unconfirmed income, turned over to the state.
Navigating Russia’s Crypto Legal Landscape
However, Aristov admitted a clear process for selling the seized Bitcoin is still lacking. He emphasized the need for new legislation to govern cryptocurrency circulation in Russia.
Separately, a bill to legally recognize crypto as property, simplifying seizures, has reportedly been sent to the Russian government. These deliberations in Moscow underscore the practical difficulties governments face when dealing with forfeited digital assets and the evolving legal status of crypto.
U.S. Government Audits Its Crypto Holdings
Meanwhile, the United States government is taking stock of its own holdings. A comprehensive audit of federally held Bitcoin is expected to conclude this Saturday, marking the first full accounting across agencies.
The audit follows earlier directives related to establishing a Strategic Bitcoin Reserve. This reserve was envisioned as a long-term holding, not intended for active selling, differentiating the U.S. approach to its crypto assets from Russia’s immediate liquidation plans.
The U.S. government’s current Bitcoin holdings are substantial, estimated at around 198,000 BTC, worth roughly $16 billion, according to data from Arkham Intelligence. While the government previously sold some seized crypto, it retains a significant amount acquired through forfeitures over the years.
The audit results could offer market insights, suggested David Bailey, CEO of BTC Inc. “Depending on what we learn, [it] might answer many of the open questions about the recent price action,” Bailey said.
The parallel actions in Russia and the U.S. show governments worldwide increasingly engaging with cryptocurrency, both as seized assets and potentially strategic reserves. Their decisions carry weight in the evolving digital economy.
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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
