Many investors find it difficult to ignore the excitement surrounding digital currencies like bitcoin. The world’s largest cryptocurrency by market capitalization increased 20 times in value from the start of the year to its peak in 2017. Although bitcoin’s price has dropped marginally in the early days of 2018, it is still significantly higher than it was a year ago.
While private investors continue to pour money into the market, some larger institutions are following suit. Hedge funds and financial organizations specialized on digital currencies have recently emerged, and there is even evidence that certain governments are participating in the craze.
In recent months, a number of governments have expressed interest in bitcoin investments.
Bulgaria
According to CoinDesk, the Bulgarian government seized more than 200,000 bitcoins as a result of an organized criminal crackdown in May 2017. The operation resulted in the arrest of 23 Bulgarians and the recovery of bitcoin worth $3.3 billion at the time. The Bulgarian authorities refused to comment on what would happen with the seized digital currency as of late November 2017, implying that a criminal investigation was ongoing.
Sweden
In the fall of 2017, the Swedish government made news for auctioning off seized bitcoin. The seized assets were substantially less valuable than those seized in the Bulgarian incident, with the Swedish Kronofogden announcing plans to sell only 0.6 BTC, which was valued around $3,200 at the time.
United States
The US has also participated in auctions of bitcoin holdings confiscated as part of criminal investigations. The US Marshals Service, for example, auctioned more over 44,000 BTC seized from Silk Road operator Ross Ulbricht in late 2015. This was the concluding sale in a series of similar auctions.
