U.S Government Rakes in Over $1.2bn in Crypto

U.S Government Rakes in Over $1.2bn in Crypto

Earlier today, we talked about regulatory risk. Governments across the world continue to fret over the crypto market and the continued risk that it poses to global financial market stability. While fretting, however, some governments have a lucrative source of funds available to fund government initiatives. Such initiatives would include the battling cybercriminals.

U.S Government Confiscates in Excess of $1bn in Crypto Value

While governments and central banks continue to explore launching their very own digital currencies, the U.S government sees a marked increase crypto seizure.

The timing this year could not have been better, with Bitcoin (BTC), Ethereum (ETH), and a number of other crypto majors hitting new all-time highs.

After seizing cryptos, the U.S government auctions off the cryptos. Recently, according to the news wires, the U.S government has taken on help to assist in managing the storage and sale of its crypto seizures.

A Lucrative Fight Against Cybercrime

With help on hand, the U.S government is now expecting to see a marked increase in crypto seizures. This is largely as a result of a continued rise in cybercrimes. While criminals have become more sophisticated, the U.S government has caught up and may have become even more sophisticated.

According to reports, the U.S Marshals Service has reportedly seized and auctioned off more than 185,000 BTC, with an estimated value of $8.6bn.

According to the Director of the IRS’s cybercrime unit, Jarod Koopman, total crypto seizures reached $700m in 2019. In the current year to August, however, seizures have hit $1.2bn.

Based on the current run rate the U.S government could have as much as $1.6bn to fight cybercrime. This will only grow next year. With more funds to take on cybercriminals this can only result in even more seizures.

Where the funds go is less clear, with the U.S government able to redirect money to government chosen initiatives. Keeping the IRS cybercrimes unit well equipped and trained would likely be a top priority, however, when considering the rise in crimes and seizures.

Source

Subscribe to get our top stories