Exchanges Outdo Auctions for Government Agencies Selling Seized Cryptocurrencies, says Exec

Bob Coiney

November 28, 2020

The cryptocurrency that has been seized by the government agencies are being liquidated. The authorities took in these assets during criminal investigations. 

A news article on Cointelegraph reported that Lithuania’s tax service liquidated more than $7.4 million to the state budget. Lithuanian State Tax Inspectorate did it with the sale of seized crypto assets through investigations. 

It is perhaps the first occasion that the Lithuanian government liquidated the seized cryptocurrencies during criminal investigations. They joined several countries globally, who are doing the same with the assets. 

Crypto Coin Growth tweeted about this latest news. 

https://twitter.com/CCGcryptonews/status/1332315556352028673?s=20 

This is unlike the United States Federal Marshals, which seized close to $40 million during an auction of confiscated assets during February last year. STI sold the cryptocurrency through an exchange.

Linas Rajackas who is the CEO of Kaiserex that is a Vilnius-based firm. The exchange was able to Bitcoin above the usual price, and STI spent less than 0.2% of that total amount of 6.4 million euro.

STI chose Kaiserex to partner with them for selling cryptocurrency. Edita Janušien?, part of the STI, said that conversion of the seized assets into euros quickly was the main aim. Within a day, the sale was managed to be done, which is commendable. 

A news article on Digitalarticle also claimed a similar report of Kaiserex cryptocurrency exchange taking the role of a broker for STI. 

Linas Rajackas owns 100% of the company shares. Unfortunately, Kaiserex is not listed on any major crypto websites as it does not come with internal order books. The exchange makes use of other exchanges for liquidity.

Bitcoin broke the $19000 during the bull market was why the sale became profitable. Rajackas said that, during the bull market, the remaining cryptocurrency was sold at “record prices” and was able to “extract maximum of euros.”

He also added that the government must take the option of the finance ministry. This way, no confusion arises in the future. The STI handles taxes and taking account of “confiscated assets,” which the government must avoid “holding something as an investment.”

However, they plan on continually working with the Lithuanian institutions dealing with more cryptocurrency deals. This way, they can continue their support to the Lithuanian central bank enabling them to work on digital currency efforts.