Pay Your Taxes, Citizen, or We Will Take Your Crypto

Pay Your Taxes, Citizen, or We Will Take Your Crypto

• The US General Service Administration is auctioning off 11 lots of cryptocurrencies, including Bitcoin and Litecoin.
• Litecoin is the newest addition to the auction, which amounts to a total of 150 LTC.
• The US government has put up several other cryptocurrencies for auction, allowing investors to purchase crypto at a discount.
• Bid winners must have a digital wallet and make the payment in no more than 24 hours.

Cryptocurrencies are digital assets that constitute ownership of a class of assets. They are often disregarded for their use in financial transactions as crypto owners tend to HODL rather than spend. Unlike tangible assets, for which it is easy to prove ownership, user’s private keys constitute their association with their digital assets. In the case of illicit activities, governments can seize and resell digital assets to recoup their losses. The General Service Administration has auctioned off some of these cryptocurrencies at a discount.

Pay Your Taxes and Buy at a Discount

The growing general interest in cryptocurrencies has created a new means for governmental institutions to leverage off seized assets. The US General Service Administration (GSA) auctioned Bitcoin, Bitcoin Cash, and Litecoin in the process of clearing surplus assets and equipment.

Thomas Meiron, Regional Commissioner at the GSA, emphasized “Experienced investors recognize a good opportunity when they see it” highlighting that their crypto auction generated a lot of “enthusiasm.” In a new auction, the GSA announced 11 cryptocurrency lots would be available for purchase.

Up to this point In 2021 the GSA has auctioned off 16.93 BTC, amounting to a total value of $937,092. With the addition of a total of 150.3 LTC, the Regional Commissioner has framed the auction as the “most exciting” sale of the year. The cryptocurrencies being sold were seized from a single taxpayer for internal review taxes. This newest auction also features 0.00022 BCH, which is insignificant when compared to the current offer.

On the Flipside

• In 2016 Australia also auctioned off £8 million worth of seized bitcoin.
• GSA auctions do not disclose the origins of the bitcoins.
• Though Bitcoin purchases at a discount might seem welcoming, buyers should consider the eventuality of being tracked.
• The colonial hack ransomware funds have been traced and seized by Federal agents.

Seizing and Selling Crypto for Profit!

The US government has already sold 9.34 BTC, which was sold across 11 separate lots. According to the Block, the sales were made below the market price, which highly incentivized investors. Still, the origins of the seized Bitcoins have not been disclosed by the GSA. The GSA further announced that it has conducted two additional BTC auctions to date.

Governmental raids are not only aimed towards crypto owners or crypto non-grata, such as the owner of SilkRoad. The US DOJ announced the seizure of 70,000 BTC from an “Individual X”. According to a Fortune report, the seized BTC were from federal agents and currently amounts to a total of $3 billion.

Bitcoin seizures are not a new occurrence. Since 2014 The US Marshal Service has reported multiple Bitcoin auctions. The confiscated funds come from multiple administrative forfeitures, including crimes, and civil and administrative cases. As stated in each press release, participants were required to submit a pre-registration form and deposit $200,000 for participation.

In 2020 the US Marshal Service auctioned 4,041.58424932 bitcoin, which amounted to $37.7 million. Additionally, in 2018 the same governmental body auctioned 660 BTC

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