Sweden pays drug dealer £1m after seizing his Bitcoin
After accumulating bitcoin through illegal online sales, the Swedish government is now being ordered to pay more than PS1m for a drug dealer in jail.
Tove Kullberg, the prosecutor, successfully argued that the man should be stripped off his illegally acquired bitcoin. In court, the court valued his crypto stash at 1.3m Swedish Kronor (PS100,000.
She said that she found it unfortunate in many ways. It has had consequences that I didn’t anticipate at the time.
The 36 bitcoin had risen in value tenfold by the time that the Swedish Enforcement Authority started auctioning them off. Only three of them could be sold to get the required amount.
Now, the authority must return 33 bitcoin to Kullberg, which is approximately PS1.1m. Kullberg detailed only two years ago how he earned the money by selling drugs.
Kullberg stated that the lesson from this incident is to keep bitcoin’s value, and that the crime profit should be 36 bitcoin regardless of the bitcoin’s value at the time.
She noted that this was the first time in Swedish legal history that cryptocurrency was seized. There was also no precedent for how to deal with bitcoin profits in court.
“I believe we should probably invest into an internal education in [the] prosecution authority, since cryptocurrency will be something we’ll have to deal with in a greater capacity than we are currently. We will make fewer mistakes if we improve our knowledge in the organization.
Just days after reports from Sweden claimed that a man had kidnapped and then repeatedly raped a woman in torture-like conditions, the bitcoin case was brought to light. He was awarded PS70,000 in damages.
He was under 18 years old at the time of the crime. Therefore, he should have received a shorter sentence.