The legal team of Fed is looking for a way to recover its seized 513 bitcoins which were confiscated for being part of a drug case in Salt Lake City. These bitcoins were initially owned by a person named Aaron Shamo who was arrested on charges of illegally distributing the so-called “cryptocurrency” which was accused by many investors as fake and bogus. When these 513 bitcoins were held back by the company on grounds of malpractice, they were worth $500,000, but as of now, these bitcoins have experienced an increment in their value up to $8.4 million which isn’t a trivial amount. Each coin now worths approximately $17,000 which is worth the recovery for securing the interests of its initial investors who were cheated.
Considering the worth of these bitcoins in recent terms, there is no way the Fed is letting go of this currency which is worth millions of dollars now. Looking at all the feasible options available, Fed has decided to cash in their bitcoins rather than fighting for the recovery of initial virtual currency.
In Utah, the U.S. Attorney has started to do all the legal framework and litigation procedures to sell these bitcoins before they devalue. There are definitely questions being raised against the legal identity of such commodities which are intangible and the recovery process.
There are 2 sides of the argument regarding the liquidation of these bitcoins. Some proponents of virtual currency argue that these bitcoins must not be converted to cash and cash equivalents because there is a sheer probability that these $8.4 million might transform to $84 million, while the other side argues that the conversion to cash must be done on immediate basis because there is a fear that this bubble might explode.
These bitcoins were brought back in 2014 and their worth has exponentially multiplied in recent times. It would be interesting to see how the Fed comes out of this muddle.