Critics often claim that Bitcoin is used for crime because it helps perpetrators stay anonymous and get away with it. But guess what? German law enforcement just got their hands on 215 BTC that has been seized and is now auctioned. How did the district attorney get the coins? Where can you participate in the auction, and why is it still a better idea to buy your Bitcoin on the market?
North Rine-Westphalia is selling Bitcoin
During a press conference, the district attorneys and North Rine-Westphalia’s minister of justice revealed to the public how they got their hands on 215 Bitcoin. Most of it was seized in several cases related to cybercrime in the darknet. German law enforcement can crack wallets and even use dogs to find hidden devices while searching suspects and their property for evidence.
Now that they got their hands on 215 BTC, they are auctioning them online. There will be 15 batches, each consisting of lots between 0.1 and 10 BTC. If you are looking for a bargain, law enforcement is turning you down because the initial price will be somewhere between 80% and 95% of the daily average that is to be determined by the district attorney. It is safe to assume that the final bid won’t be much lower than the daily average.
Why you shouldn’t take part in the auction
Many people have asked themselves why the ministry of justice in North Rhine-Westphalia is opting for an auction instead of selling the Bitcoin on the market. The answer is easy but not obvious. They are required by law to auction seized goods, including cars, jewellery, and Bitcoin. There is simply no exception if an auction is possible.
But this is not even the most interesting part. The district attorney is keeping each lot on a separate paper wallet, which has been created by the district attorney and is under seal. And this leads us to the reason why you shouldn’t participate. The auction winner has to travel to Cologne, Germany, identify himself to the police, and pick up the paper wallet.
This is quite some effort to buy Bitcoin, which is very easy with LiteBit: it requires no travel, and you don’t have to trust the district attorney and his servants. What if they failed to keep those private keys secret?