The State of Hesse and the Public Prosecutor’s Office in Frankfurt am Main sold crypto money confiscated from drug deals worth around 100 million euros within a week. This emerges from a statement from the bank Sheikh on Wednesday, which had taken over the processing of the sale of “contaminated coins”.
The sales process for the crypto values was completed by December 20, according to a statement from the Sheikh bank. According to the Public Prosecutor’s Office, the crypto money came from drug offenses that had been seized in the course of an investigation. The perpetrators were sentenced to several years’ imprisonment in July 2021. The digital money then went to the State of Hesse as the new owner.
Legally secure sale
“Contaminated coins”, which originate from criminal machinations, cannot be traded again in the conventional way on crypto exchanges, writes the bank Sheikh. Together with the Frankfurt Public Prosecutor’s Office, they have worked out a process with which the crypto currencies can be cleaned and thus sold. This process will allow digital money from crime to be sold quickly and in a legally secure manner. That is why the Frankfurt Public Prosecutor’s Office and the Scheich banking house have reached an agreement that is intended to ensure in the long term that confiscated crypto money can be sold in a legally secure manner for the State of Hesse.
“We had to break new ground, especially when it came to dealing with the money laundering requirements of trading participants. I am sure that we have created a new market standard for the exploitation of state-confiscated crypto assets,” said Daniel Resas, lawyer and expert on blockchain-based business models at the business and tax law firm YPOG, which provided legal advice on the process.
As Boris Ziganke, member of the board of directors of Bankhaus Scheich, announced that it was difficult to sell such large amounts of crypto currencies in a short time without causing market distortions. This is not possible via the usual crypto trading platforms that are used by private investors. However, Ziganke did not give details of how the bank had proceeded.
Bankhaus Scheich was founded in 1985 and specializes in cryptocurrencies and digital assets.
(olb)