YoBitcoin
  • Cryptocurrency
    • Cryptocurrency News
    • Cryptocurrency Exchanges
  • Bitcoin & Co
  • Yobit
No Result
View All Result
  • Cryptocurrency
    • Cryptocurrency News
    • Cryptocurrency Exchanges
  • Bitcoin & Co
  • Yobit
No Result
View All Result
YoBitcoin
No Result
View All Result
Home Cryptocurrency News

This Is How Confiscated Bitcoin, Ethereum, And Monero Sold By The Taxman

Timo by Timo
November 27, 2020
in Cryptocurrency News
0
This Is How Confiscated Bitcoin, Ethereum, And Monero Sold By The Taxman
90
SHARES
472
VIEWS
Share on FacebookShare on Twitter


This Is How Confiscated Bitcoin, Ethereum, And Monero Sold By The Taxman 101
Source: Adobe/stockphoto-graf

Selling the confiscated EUR 6.4m (USD 7.63) in crypto for the Lithuanian tax authority was a lengthy and complicated process that lasted at least two months and required long preparation and detailed coordination between the seller, supplier, trading partners, and intermediary banks so as to avoid issues and delays during the sale, according to the CEO of the Lithuanian investment and exchange service that performed the sale.

As previously reported, on November 18, the Lithuanian State Tax Inspectorate (STI), sold EUR 6.42m worth of bitcoin (BTC), ethereum (ETH), and monero (XMR), which had been confiscated in February 2020. This was the first time the authority sold confiscated cryptoassets. They have done this with the help of the supplier Kaiser Exchange International, aka Kaiserex.

And though the details on the confiscation itself are unavailable, Kaiserex CEO Linas Rajackas told Cryptonews.com that “from my cryptocurrency experience and some market knowledge I would guess it is related to illegal drugs. Considering the fact that STI had a significant amount of monero, over XMR 11,000, which is a preferred currency in the dark web, because of it’s anonymity,” he said, adding that he doesn’t know “the exact source of confiscation and did not ask about it.”

In total, the company sold BTC 336.85357, ETH 360.37325, and XMR 11,992.81.

The sale process began with the start of the public contest for the cryptocurrency sale at the beginning of September. According to Kaiserex, the company was one of four suppliers that had met the requirements of the public procurement tender, and they offered the lowest price. The CEO said that they “had to pass extensive due-diligence checks personally and as a company, provide a contract, which showed significant amounts of cryptocurrency trading volume, have qualified personnel, be in the market for a certain amount of years, etc.”

After the company won, they signed the contract with the STI on November 10. The STI was “very responsive to our advice that it is a very favorable time to sell, since all the prices were at record highs and we sold it [confiscated crypto] 8 days later.”

“It was done through one of the largest OTC [over-the-counter] desks in the crypto market. It consisted of less than 20 trades timed at the right moments. Trading duration was about 12 hours,” the CEO said, without naming the OTC desk.

According to the company, the STI’s fast reaction to the advice to sell enabled the sale of the cryptocurrency “at record prices and extract the maximum amount of euros.”

And while the sale lasted less than a day, with the money landing in the STI’s hands in less than two days, the actual preparation for the sale took more than a month. This consisted of at least two major parts:

  1. Given that the confiscated crypto is most likely related to crime, said the CEO, the company had to make sure that no trading partners would freeze the trading process when Kaiserex sent them crypto from these potentially blacklisted wallets, because their KYT (Know Your Transactions) systems would likely put a red flag on it.
  2. Making sure that all intermediary banks are expecting these transactions and have all the documentation beforehand.

Rajackas added:

“I can not disclose specific details, but it was a complicated and lengthy process. Any kind of slack or miscommunication could have caused delays and problems when doing the sale.”

The main challenge during this entire process, per the CEO’s words, was “coordinating all the aspects together,” including partners buying the crypto, STI selling the crypto, and the intermediary banks sending the money without delays. “To generalize, the most complicated part to do was talking with compliance departments, providing documents and explaining what we plan to do,” he said.

However, it turns out that a month of preparation is actually not a lot of time for the entire process at all, which is a lesson Kaiserex learned, said Rajackas. He told Cryptonews.com that “it’s never too early to start preparing for deals like this.” They started sale preparation even before they entered the public contest in September and “thought that we have a ton of time to do it. Looking back now I see how much it helped us to be early and well prepared. We didn’t have too much time at all.”

The company plans to continue working with the Lithuanian institutions on similar cryptocurrency deals as their current contract with STI is valid for the next year.
___
Learn more:
US Government Is Now Top Bitcoin Whale. What Could Happen Next?
Competition Among Seized Bitcoin Auctions Might Get Tougher



Source link

Previous Post

Why Binance CEO Stopped Ethereum Transactions

Next Post

Bitcoin: Don't Panic, It Is Just A Short-Term Retracement (Cryptocurrency:BTC-USD)

Next Post
Bitcoin: Don’t Panic, It Is Just A Short-Term Retracement (Cryptocurrency:BTC-USD)

Bitcoin: Don't Panic, It Is Just A Short-Term Retracement (Cryptocurrency:BTC-USD)

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What’s The Right Time To Start Buying Crypto?

What’s The Right Time To Start Buying Crypto?

March 4, 2021
Dogecoin could eventually hit $1

Dogecoin could eventually hit $1

March 18, 2021
Chainalysis Joins Smart Contract Security Alliance

Chainalysis Joins Smart Contract Security Alliance

May 12, 2020
Top Airdrops You Should Look Out for in March 2020

Top Airdrops You Should Look Out for in March 2020

May 12, 2020
This Cryptocurrency Is Up 260% and It Seems to Have More Gas in the Tank

This Cryptocurrency Is Up 260% and It Seems to Have More Gas in the Tank

May 27, 2020
Giving Crypto Investors Sustainable Earning

Giving Crypto Investors Sustainable Earning

November 2, 2020
New York teen hacker sued for cryptocurrency theft worth $24 million

New York teen hacker sued for cryptocurrency theft worth $24 million

May 12, 2020

Liquid.com Bolsters Security for Cryptocurrency Exchange with Sumo Logic

May 12, 2020

Tether USDT Surpasses XRP as the 3rd-Largest Cryptocurrency

May 12, 2020

Top three apps that will trade bitcoin for you! | London Business News

June 20, 2020

Bloodbath as Bitcoin nosedives to $8,000, Ethereum $180 and Ripple $0.1780

May 12, 2020

Bitcoin Is Here To Stay As Majority Thinks Crypto Will Play a Role In The Next Decade, Survey Says

July 5, 2020

Bitcoin Breaks $30,000; Cryptocurrency Extends Eye-Popping Rally

January 2, 2021

Tezos Staking Reaches A New ATH at Over 80%; Top 5 Exchanges Holding 18% of XTZ Supply

May 23, 2020

First Bitcoin ETF in North America debuts on TSX as cryptocurrency prices surge

February 18, 2021

Blackrock CIO: Cryptocurrency Is Here to Stay, Bitcoin Could Replace Gold

November 21, 2020

How to buy Cryptocurrency?

If you want to start investing in Bitcoin and cryptocurrencies in 2020, you will first be faced with the big question: Where do I buy Bitcoin? First of all, it is important to distinguish between crypto exchanges and crypto brokers. Both are trading platforms where you can invest in cryptocurrencies.

Recent News

House edge: UK Gambling Commission issues another fine over money laundering failures

House edge: UK Gambling Commission issues another fine over money laundering failures

March 18, 2021
Dogecoin could eventually hit $1

Dogecoin could eventually hit $1

March 18, 2021

Categories

  • Bitcoin & Co
  • Cryptocurrency
  • Cryptocurrency Exchanges
  • Cryptocurrency News
  • Yobit
No Result
View All Result

No Result
View All Result
  • Home