Finnish Govt Says Seized Bitcoins Should Be Stored Offline

Authorities search for “cold storage” for some 2000 Bitcoins

by Viko
22 February • 1 min
In Regulation

Finland’s government has advised that about 2000 Bitcoins that have been confiscated by the country’s authorities, should be stored offline and not on virtual currency exchanges or wallets, Bloomberg reported, quoting a document with guidelines it has seen.

The Bitcoins, worth about USD 22.8 million as of 22 February, were confiscated during raids mostly in 2016 and it is not clear how they have been stored so far. Cold wallets are devices that are not connected to the Internet in order to prevent hacking attacks and thievery attempts.

The government’s guidelines treat Bitcoin and other cryptocurrencies as assets, not as currencies, meaning that they cannot be used as means of payment, nor as investment.

The confiscated digital coins are expected to be sold mainly at public auctions and converted into to euro.

In December, Bulgarian authorities seized 213,519 Bitcoins, worth some USD 2.3 billion presently.   

At the end of January, the US Marshal’s Office auctioned off 3813 Bitcoins confiscated in criminal investigations.