Russia is progressing towards the potential sale of Bitcoin that has been seized during criminal investigations, as officials strive to establish a legal framework for managing such digital currencies, local media has reported.
The Federal Bailiff Service of Russia, in collaboration with other governmental bodies, is spearheading efforts to turn confiscated cryptocurrencies into state revenue.
Dmitry Aristov, the head of the Federal Bailiff Service, has affirmed that authorities are working on a legal and operational strategy to transform seized Bitcoin into state funds.
This initiative is expected to commence with a prominent case involving a former official implicated in a crypto bribery scandal.
In June 2023, investigators revealed that Marat Tambiev, a former head of the Investigative Committee for the Tverskoy District, received a bribe amounting to 1,032.1 BTC, which had an estimated value of around $28 million at the time.
The court found that Tambiev’s Bitcoin holdings were acquired through dubious means, leading to a 16-year prison sentence and a fine of 500 million rubles.
Even with the conviction, Russian officials are still exploring how to legally confiscate and sell digital assets.
Aristov noted that discussions are ongoing regarding the state’s ability to sell seized Bitcoin, highlighting the lack of established legal pathways for confiscating crypto assets. He remarked:
“During the criminal proceedings, Bitcoins were discovered. We are currently in discussions with the relevant authorities to establish a method for utilizing this kind of financial instrument.”
In contrast to these developments, recent actions in the United States indicate a different approach.
Last month, former President Donald Trump signed an executive order to create a strategic Bitcoin reserve that prevents the country from selling its BTC assets. Instead, the U.S. government intends to build this reserve by way of direct purchases and asset seizures.
Meanwhile, Russia is taking a more conservative approach. Deputy Finance Minister Vladimir Kolychev reiterated that the nation does not plan to incorporate cryptocurrencies into its national reserves, citing their inherent volatility and unpredictable price fluctuations.