Bitcoin rally is not for prominent crypto investors and mega-companies only. Instead, the state authorities too are capitalizing on Bitcoin’s value surge. A county in New Jersey has successfully earned huge profits by hosting an auction of Bitcoin which the authorities in the county had seized as far back as 2018.
A raid was carried out by the authorities in Monmouth County as far back as 2018 against the unlawful distribution of narcotics.
At that time, the authority noticed that various elements were involved in the sale and supply of illegal drugs and narcotics. Upon receiving complaints and fetching credible evidence, the county’s law enforcement agencies initiated a crackdown operation. In this operation, during one of the raids, the authorities seized Bitcoins from the possession of the illegal drug mafia.
The authorities noticed that crypto, especially Bitcoin, was given to the mafia as profits for carrying out the successful distribution of illegal drugs. Since then the seized Bitcoins were lying in the custody of the state county under the “seized goods” label.
A day ago, the state-county held an auction in which the authorities intended to sell the seized Bitcoins. Although the exact number of Bitcoins was not provided to the press, however, it was informed that the county had earned massive profits.
It was reported that Bitcoins were sold for an amount of US$ 57,000 against each Bitcoin. All the Bitcoins were sold for US$ 198,000 during the auction, suggested the local press. This means that almost 3.5 Bitcoins were put for sale through the public auction.
In a press statement, the state authorities told that since the time of Bitcoin seizure, Bitcoin’s value has surged by approximately 300%.
During the raid, the local police too arrested the prime suspect. Later on, the suspect was presented before the County Court for a proper trial. During the course of the trial, the accused pleaded guilty and before the Court. Thereafter, in 2019 the authorities filed a motion before the Court claiming forfeiture of the “seized goods”. The Court duly accepted the motion and the authorities were allowed to utilize the proceeds from the sale of “seized goods”.
After acquiring ownership rights on the “seized goods”, the authorities did not sell the seized Bitcoins until recently.
Monmouth County has a history of selling seized Bitcoins and the recent sale of Bitcoins is now part of the history as well. In the year 2017, local police in which 16 individuals were arrested carried out similar raids. The authorities claimed that the arrested individuals were operating fraud schemes and committing frauds majorly upon the banks. At that time also the authorities seized Bitcoins worth US$ 1.25 Million according to the prevailing rate of Bitcoin at the time.
These seized Bitcoins were also transferred in the ownership of the county. However, their sale has not taken place as of today and still, the county possesses those Bitcoins.