At the beginning of this week, the Lithuanian Tax Service The Lithuanian State Tax Inspectorate (STI) increased the state budget by $ 7.6 million by selling cryptocurrencies that were confiscated during a criminal investigation.
The occasion was the first time the Lithuanian government liquidated the seized cryptocurrencies. In this way, the country joined the growing number of jurisdictions around the world that have auctioned or sold cryptos obtained through the long arm of the law.
In contrast to the United States Marshals who received $ 37 million at an auction of seized cryptocurrencies last February, The STI decided to sell the cryptocurrencies on an exchange. according to Linas Rajackas, CEO of Kaiserex, a Vilnius-based cryptocurrency startup, This seemed to work in favor of the regulator::
“We managed to sell Bitcoin above the average price of the day, no auction would have been successful. The STI spent less than 0.2% of the total (6.4 million euros) on exchange fees, legal contracts and crypto transaction services from what turned out to be so as efficiently as possible. “
The STI chose Kaiserex as its technology partner to sell the cryptocurrencies through a public tender. The director of STI, Edit Janušienėsaid Cointelegraph:
“The aim of the STI was to convert cryptocurrencies into euros as quickly as possible. Therefore, it was primarily decided to announce a public tender for the search for a national supplier. Four Lithuanian companies took part in the tender, which Kaiserex won. “
According to Janušienė, The sale of the cryptocurrencies began on November 18th and lasted almost 24 hoursand the STI eventually added more than 6.4 million euros to the state budget. The cryptos were initially confiscated by a local court. While Janušienė confirmed the Kaiserex Association, he did not elaborate on why the regulator deviated from the auction model.
Rajackas stated that “”[el STI] He has consulted with professionals in the field and it was obvious that selling in large OTC markets would be much more profitable than selling at auction. The auction is a very poor choice in comparison, because you can’t know in advance a good day to sell, set the price or go back ”.
Kaiserex completed the sale through a major cryptocurrency exchange. Rajackas said, “I cannot tell the OTC market that we are using. What I can say is that is one of the five best stock exchanges in the world“As of press time, Binance, Huobi Global, Coinbase Pro, Kraken and Bithumb are the top five cryptocurrency exchanges on CoinMarketCap.
The sale included around 337 Bitcoin (BTC), 360 Ether (ETH) and nearly 12,000 Monero (XMR).. Each cryptocurrency was sold at market price on the trading day, with BTC trading at € 15,100 ($ 17,900), ETH at € 400 ($ 480), and XMR at € 99.6 ($ 119).
The bull market where Bitcoin briefly crossed the $ 19,000 threshold was one of the reasons the sale was so profitableafter Rajackas. “This made it possible to sell the available cryptocurrencies at record prices and receive the maximum amount of euros.”Rajackas said, adding:
“In my opinion, a government that wants to trade cryptocurrencies should do so through our Treasury Department, which plans and manages the government’s assets. The STI deals with taxes and reviewing seized assets, it has nothing to do with speculating or holding currencies as an investment. “
Kaiserex is a cryptocurrency exchange that acts as a broker connected to more than 40 cryptocurrency exchanges and multiple OTC markets. Rajackas, who owns 100% of the company, says Kaiserex not listed on major crypto websites like CMC because it has no internal order books and relies on other exchanges for liquidity.
According to reports The company plans to continue working with Lithuanian institutions on similar cryptocurrency deals and assisting the Central Bank of Lithuania in its digital currency efforts.