Have you ever wondered what happens to bitcoins that are confiscated by the state? The process is no surprise. If the state seizes crypto assets proven to be linked to criminal activity, they are typically auctioned off. The proceeds then flow into public budgets. This has happened several times and has become a standard procedure for handling confiscated digital property.

The first was the USA

The United States was the first country in the world to auction off seized bitcoins. This happened in mid-2016, when 2,700 bitcoins were auctioned for about $1.6 million.

Another larger auction took place less than two years later, involving 3,813 bitcoins with a total value of about $44 million. This clearly shows how important the timing of an auction is for the government’s returns.

The most recent major auction in the USA occurred in January this year. The Department of Justice auctioned over 69,000 bitcoins seized in 2020, earning about $6.5 billion. These bitcoins were traced back to the infamous darknet marketplace Silk Road, which was shut down in 2013.

Four years ago, France

France held its first auction of seized bitcoins in 2021. It involved 611 bitcoins confiscated from hackers. The starting price of 23,250 euros per bitcoin rose to an average of around 40,000 euros, roughly in line with the market rate at the time. The French government collected just under 24.5 million euros.

The timing once again played a major role. The auction had been planned since September 2020, when bitcoin traded at around $10,000—well below the all-time high of more than $60,000 reached shortly before the actual auction.

German billions

Germany has also profited from seized bitcoin sales. One of the country’s most significant cases came in June 2024, when police began selling part of a stash of 50,000 bitcoins. To avoid crashing the market, they sold gradually instead of all at once.

The staggered sale caused a slight dip in bitcoin’s price. Still, within about a month, German authorities sold roughly 17,500 bitcoins, generating nearly €1 billion for public finances. At the time, the total value of all 50,000 bitcoins was estimated at around $2.2 billion.

Jiřikovský’s bitcoins still out of reach in the Czech Republic

The Czech Republic, meanwhile, is still dealing with the notorious case of programmer Tomáš Jiřikovský from Břeclav, which we covered earlier. Last week, police arrested him on suspicion of money laundering and drug trafficking. They also seized the bitcoins he had previously donated to the Ministry of Justice, which are suspected of originating from illegal activity. Their value is estimated at around $47.7 million.

However, the bitcoins in Jiřikovský’s crypto wallets remain beyond the state’s reach, and the investigation is ongoing.