When a cop smells a fish and catches the miscreant, it’s great news. But what follows isn’t – the stink of fishes lying unused.
From Ross Ulbricht to Aaron Shamo to Ahn, these fishes often prove more unwieldy than a whale.
We have heard about Ahn, the operator of a porn site who was recently convicted and whose 191.32333418 BTC was confiscated by the South Korean government. But now word is out how there are challenges in disposing off this money and giving the proceeds to an apt treasury.
Price-volatility and the completely-new-dynamics of this currency, coupled with iffy regulatory-stances and forfeiture-delays, make conventional routes of auction or storage both unviable and burdensome.
Authorities in the US have faced similar situations when they had to work out how to sell the 513.1490393 bitcoins (BTC) seized during an opioid drug case last year.
They did so by spreading the amount across more than one exchanges, slicing it in different increments and then putting the sales proceeds in a Treasury Forfeiture account.
Legal delays, personal wallet battles, conversion/liquidation barriers and several auctions were struggles that kept the US folks occupied through 2015 in the Silk Road case (recall the US Marshals Service (USMS) auction that was done in blocks and tranches). Similarly, auctioning 216 bitcoins confiscated during a 2016 criminal investigation was a hassle that South Korean fin-cops went through as well.