As per the latest reports, the United States Department of Justice (DoJ) is planning something big that is related to cryptocurrencies. The reports are emerging that the US DoJ is planning to sell-off a huge amount of cryptocurrencies.
The cryptocurrencies being sold off by the US DoJ are the funds that were confiscated by the authority in response to a fraud investigation. The sources reveal that the cryptocurrencies the DoJ is planning to sell are worth $56,000,000. These funds are in the form of cryptocurrencies and the DoJ had seized these cryptocurrencies while running an investigation on a Ponzi scheme.
The sources have revealed that these cryptocurrencies were seized from the fraudsters running the BitConnect Ponzi scheme.
It was on Tuesday, November 16, 2021, when the Department of Justice made an official announcement in regards to selling off cryptocurrencies. The firm authority has revealed that the cryptocurrencies will be sold and the proceeds will be stored in the form of USD.
The DoJ has revealed that they are currently in the process of getting to the bottom of the case and will soon be concluding their investigation. Once done, they will distribute the fund accordingly among the victims of the BitConnect victims. For now, they are trying to establish and authenticate the number of victims and how much funds they had lost to the Ponzi scheme.
They will also be establishing how many of the victims had lost their funds in the form of cryptocurrencies and how many had lost them in the form of fiat.
The investigation is underway and the distribution of funds among the victims would be through the sentencing through the court for future restitution.
As of now, this is the largest amount of funds that the US authorities have seized from a Ponzi scheme. The US DoJ has also revealed that it is going to be one of the largest Ponzi schemes that they have put an end to. They have also revealed that the perpetrators behind the Ponzi scheme will also be facing extreme criminal charges for luring innocents.
For now, the US DoJ has not clarified or revealed how it intends to carry out the sale of cryptocurrencies. However, there is a possibility that Coinbase may be involved in the matter because the US regulatory authorities have sought support from Coinbase in the past.
Coinbase is the second-largest cryptocurrency exchange in the world that is based in the United States. Several corporate firms and even the regulators have approached Coinbase whenever they needed support and guidance related to cryptocurrencies.
It is being speculated that the seized funds are in the form of Bitcoin (BTC) and Ethereum (ETH). Therefore, there is a very high chance that the victims will be getting more than they had invested in the Ponzi scheme in the first place.