Finnish Customs forced to become Bitcoin Hodler, confiscated Bitcoins have surged 20 times

While some governments choose to sell confiscated bitcoins through enforcement actions, Finland has not yet decided how to dispose of these seized assets. According to Finnish media reports yesterday, the Finnish Customs, a sub-agency of the Finnish Ministry of Finance, has been considering how to handle 1,666 bitcoins confiscated from drug dealers several years ago. Finnish Customs is reluctant to auction off the seized bitcoins as it may lead to them re-entering the hands of criminals.

Finnish Authorities Confiscated Bitcoin, Now Worth 20 Times More

According to reports, the confiscated bitcoins were valued at less than 700,000 euros, approximately 760,000 US dollars at the time. As of now, the value of the 1,666 bitcoins has surged to 14.09 million euros, exceeding 15.2 million US dollars. The institution initially planned to auction these cryptocurrencies in 2018 but decided to continue holding them due to concerns regarding "anti-money laundering" issues.

Pekka Pylkkänen, the Financial Director of the Finnish Customs, stated that cryptocurrencies like Bitcoin are primarily used for illicit activities:

"From our point of view, these issues are specifically related to the risks of money laundering. Buyers of virtual currencies seldom use them for legitimate activities."

The report also noted that in addition to holding bitcoins worth over 15 million US dollars, the Finnish Customs have also confiscated and hold altcoins worth millions of euros.

US Suffers $1.7 Billion Loss Due to Premature Bitcoin Auction

Regardless of the reasons behind the Finnish Customs' decision to hold the confiscated cryptocurrencies, the country is evidently not the only one viewing Bitcoin and other cryptocurrencies as potentially more dangerous for money laundering than cash. In July 2019, US Treasury Secretary Steven Mnuchin expressed extreme skepticism towards Bitcoin, suggesting that Bitcoin could be misused by money launderers and terrorists, posing a national security issue.

Meanwhile, the US does not seem to be as concerned about profiting from hoarding Bitcoin. On February 18, this year, the US Marshals Service sold another batch of bitcoins confiscated in law enforcement operations. According to data compiled by renowned cryptocurrency expert Jameson Lopp, the US Marshals Service suffered a loss of over 1.7 billion US dollars by prematurely selling the confiscated bitcoins.

According to Lopp's data, the institution has confiscated and sold 185,230 bitcoins.

Source

Join Telegram now for the most accurate blockchain news and cryptocurrency updates!

Related Reading

• Digital Gold Dominance Shifts! XRP Overtakes Bitcoin, Correlation with Gold Price Surges
• Nordic Countries Head Towards Cashless Society, Sweden Continues CBDC Trials, Finnish Scholars Not Optimistic