US prosecutors move to cash in on $8.5M in seized bitcoin

[inanna]

SALT LAKE CITY (AP) — U.S. attorneys in Utah prosecuting a multimillion-dollar opioid drug-ring are moving quickly to sell seized bitcoin that’s exploded in value to about $8.5 million since the alleged ringleader’s arrest a year ago.

The U.S. Attorney’s Office for Utah cites the digital currency’s volatility in court documents pressing for the sale. The bitcoin cache was worth less than $500,000 when Aaron Shamo was arrested on drug charges, but the value of the digital currency has skyrocketed since then.

Bitcoin was created as a digital alternative to the traditional banking system, and is prone to swings in value based on what people believe its worth.

For federal prosecutors in Utah, sales of seized assets like cars are routine, but bitcoin is new territory, spokeswoman Melodie Rydalch said Thursday.

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https://apnews.com/3f8db32f3762431ea28fbf50b82ff2cd/US-prosecutors-move-to-cash-in-on-$8.5M-in-seized-bitcoin

[ck4829]

1. "prone to swings in value based on what people believe its worth"

But isn't that like everything in the economy though? The dollar? Stock market?

[MisterProton]

2. Exactly! Value can be very subjective for everything

A bottle of water is valued a whole lot more to a guy thirsting in the desert vs the guy standing next to a water reservoir.