Russian authorities are exploring how to convert seized bitcoins into state revenue following a criminal case against a former investigator found guilty of corruption.
How the Bitcoins Were Seized
The seizure of a large amount of bitcoins from a former investigator in Moscow has set a precedent for Russia. In 2023, the court decided to seize 1032.1 BTC stored in a hardware wallet from the former head of the Investigative Department for Tver district and convert them into Russian income.
Current Measures and Future Steps
Russia’s Federal Bailiff Service is developing a mechanism to convert cryptocurrency into state income. FBS director Dmitriy Aristov stated that this asset poses a problem and several interested institutions are working on finding a solution. There's a need to create a methodology for implementing these financial instruments.
Need for Legislative Solutions
Russian authorities have yet to find a solution to challenges related to cryptocurrency confiscation. Aristov emphasized the need to legislatively regulate the turnover of digital assets. A proposal has been made to establish a state-run crypto fund for seized assets, along with a draft to legally recognize bitcoins and other cryptocurrencies as property to facilitate confiscation.
This case highlights the need to legislatively regulate issues surrounding cryptocurrency confiscation in Russia, aiding in more effective measures against corruption and crimes involving digital assets.
