WHAT'S HAPPENS TO SEIZED CRYPTOCURRENCY

Seized cryptocurrency typically goes through the following process:

1. Identification and freezing: Law enforcement agencies identify and freeze cryptocurrency assets linked to illegal activities, such as money laundering, fraud, or other crimes.

2. Wallet transfer: The seized cryptocurrency is transferred to a secure wallet controlled by the seizing authority.

3. Storage and management: The cryptocurrency is stored in a secure environment to prevent theft or loss.

4. Auction or sale: Once legal proceedings conclude, seized cryptocurrency may be sold or auctioned off.

5. Distribution of funds: Proceeds from the sale are typically used to:

- Compensate victims

- Cover investigative and legal costs

- Support government programs or initiatives

Notable examples include:

- 2020: US authorities seized $1 billion in Bitcoin linked to Silk Road.

- 2022: DOJ seized $3.6 billion in Bitcoin and arrested couple for laundering funds tied to 2016 Bitfinex hack.

The process varies depending on jurisdiction and specific laws.