Authorities in Finland are trying to figure out a means to store 2,000 Bitcoins that were confiscated in the country in 2006. The coins are currently valued at $22.8 million.
Bloomberg reports that the authorities are not allowed to store the coins on virtual currency exchanges. Instead, they are expected to store them in cold storage off the internet. Hence, the finish government has released strict guidelines that are to govern the conduct of the authorities who are handling the coins.
Custom offices in Helsinki failed to comment on how they would store the BTC coins.
Bloomberg states the Finish government prohibits authorities from considering Bitcoin or any other crypto asset as currency. Rather it is an asset and as a rule, it can’t be treated as an investment or accepted as a means of payment the treasury document indicates.
As per a court ruling, the seized BTC will be converted to Euros at public auctions, as the Treasury considers commercial exchanges to be “untrustworthy and opaque”.
This isn’t the first case in which cryptocurrencies are seized in criminal investigations and are auctioned off by the state. Earlier US Marshal’s Office auctioned off 3,813 seized Bitcoins in criminal investigation.
The FBI is also considered to be the biggest shark in the cryptoworld as it acquired a Bitcoin wallet, seized from an illicit online marketplace operator Ross Ulbricht, which gives it access to over 144,000 Bitcoins. FBI also seized Silk Road funds, containing 30,000 Bitcoins, which later auctioned off to Tim Draper. Since then FBI has acquired hundreds of wallets.
It isn’t an easy task to store 2,000 Bitcoins considering the prominence of cryptocurrencies has attracted many scammers and hackers who are looking to earn the digital assets easily.
This technology is still young and experts are still trying ways to secure digital assets. The exchanges also aren’t very secure as they are susceptible to hacks too. As in a recent hack of Coincheck where NEM tokens worth over $540 million were lost is a quick flash back.