The German city, Frankfurt has made it to the headlines with its exclusive initiative to “clean” the formerly dirty crypto. In an attempt to return the illegal cryptocurrency to regular circulation, the State of Hesse and Frankfurt’s General Public Prosecutor’s Office have signed a long-term agreement with Bankhaus Scheich Wertpapierspezialist AG to resell confiscated crypto.
“A framework agreement between the Frankfurt Prosecutor General’s Office and Bankhaus Scheich also establishes a long-term partnership and serves as the basis for future divestment of confiscated cryptocurrencies by the state of Hesse.”
Last week, as its first ‘cleaning’ initiative, the licensed bank and regulated trading partner, Bankhaus Scheich sold 100 million euros, i.e., $113 million worth of crypto which was seized in a criminal case against three drug traders.
Process of ‘cleaning’ dirty crypto
The German authorities together with the Bankhaus Scheich established a system to facilitate legal, secure, and quick processing for these ‘cleaned’ crypto transactions in foreseeable future. Additionally, Bankhaus Scheich noted that because these seized cryptocurrencies are related to crime, they are considered “contaminated coins”, therefore, they cannot be traded on mainstream exchanges.
However, with the exclusive system to process these transactions, it can be ensured that trading partners are informed that these formerly illegal cryptocurrencies are back in legal possession and have been declared “clean,” allowing them to be sold.
Senior Public Prosecutor Jana Ringwald, who represents the project on the side of the Attorney General’s Office, said, “Cryptocurrencies have become the means of payment of cybercrime. Not only their confiscation requires a professional approach, but also their exploitation. The General Public Prosecutor’s Office in Frankfurt am Main and Bankhaus Scheich have developed a market-oriented and legally secure solution, which is unique in Germany so far, to return such incriminated crypto assets to the regular market.”
This is not the first time that the German authorities have picked an out of the box method to manage their confiscated crypto. Earlier this October, Germany’s North Rhine-Westphalia Justice Ministry auctioned a large sum of seized Bitcoin at a discounted price. During the time when Bitcoin was rallying above $62K, German authorities set the lowest bid at just $49k.
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