Bloomberg reported Wednesday that the Frankfurt General Prosecutor’s anti-cybercrime office has contracted Bankhaus Scheich Wertpapierspezialist AG to “clean” cryptocurrencies worth roughly 100 million euros ($113 million) in the German state of Hesse. In a criminal prosecution involving three narcotics dealers, the coins are in seizure.
The bank reveals the crypto is to be clean then, return to regular circulation:
“As the cryptocurrencies are related to crime, they are considered ‘contaminated coins’ and cannot be traded on mainstream exchanges.”
According to the magazine, Bankhaus Scheich’s cleaning process
“ensures that trade partners are aware that the currencies are back in legal ownership”
“and are ‘clean,’ allowing them to sell.”
The Frankfurt-based bank, on the other hand, did not disclose any additional information about the process.
The cryptocurrency sells in one week earlier this month, according to Bankhaus Scheich. The funds will now be to fund the state government’s budget.
Prosecutors and the bank have stated that they will work together in future criminal cases. So, to reintroduce confiscated bitcoins to the market.
Several users on social media expressed curiosity in the German government’s move. Podcaster Joe Weisenthal, for example, tweeted:
“It’s interesting that governments are in the service of, essentially, reverse laundering crypto. They take tainted crypto (that was seized in criminal cases, and as such isn’t traded on exchanges) and then wash it so that it can trade freely again on the market.”
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