South Korean prosecutors finally sold Bitcoin (BTC), which was seized from the criminal in 2017, and is worth $ 10.5 million more than it was at the time of arrest. The money is allegedly held in the state treasury.
According to reports from the Suwon District Prosecutor’s Office, this is the first time that the confiscated bitcoins have been sold by the authorities, and it is the first time that the coins in question have been transferred since they were placed in cold storage in 2017.
The coins were originally valued at $ 238,000 at the time of confiscation, but were recently sold for $ 10.8 million, which is a 4,400% increase in value over four years. Based on the percentage increase, we can assume Bitcoin was worth close to $ 1,300 at the time of arrest, near April 2017.
In the absence of specific laws or regulations regarding cryptocurrency at the time, authorities used to place coins in a cold store. In late March, the South Korean government passed wide-ranging cryptocurrency laws for the first time, increasing pressure on exchanges and virtual asset providers to use real-time trading accounts and report their activities to the Korea Financial Intelligence Unit. The prosecutor’s office allegedly sold the coins once the laws were passed on March 25th.
South Korea’s willingness to regulate the cryptocurrency space stems from revelations about the use of cryptocurrency for tax evasion and persistent concerns about money laundering. In January 2022, new laws will go into effect that will impose a 20% capital gains tax on cryptocurrency trading profits.
South Korea’s National Tax Administration said the number of investors in the cryptocurrency space has increased by 25% over the past year, increasing overall trading volume by 800%.