Earlier this week, Lithuania’s tax service, Lithuania’s state tax office, added $ 7.6 million to the state budget by selling confiscated cryptocurrencies as part of criminal investigations.

This incident was the first time the Lithuanian government has phased out confiscated cryptocurrencies. In doing so, the country has joined a growing number of courts around the world that have sold or sold cryptocurrencies acquired by the long arm of the law.

However, unlike federal marshals in the United States, which received $ 37 million in the auction of confiscated cryptocurrencies in February last year, STI decided to sell the cryptocurrency through an exchange. According to Llanas Rajakas, CEO of Vilnius-based crypto startup Kaiserex, this seems to work in the regulator’s favor:

“We managed to sell Bitcoin at a higher price than the average price that day, and no auction could have achieved that. STI spent less than 0.2% of the total received (6.4 million euros) on currency costs, legal contracts and cryptocurrency services. So it was. This is as effective as possible. ”
STI has chosen Kaiserx as its technology partner for the sale of cryptocurrencies through an open tender. STI chief Edita Janusienė told Cointelegraph:

“The goal of STI was to convert cryptocurrency into euros as quickly as possible. Therefore, it was first and foremost decided to announce an open tender in search of a national supplier. Four Lithuanian companies participated in the tender. won by Kaiserx “.
According to Janusienė, the sale of cryptocurrency started on November 18 and took almost 24 hours, with STI eventually adding over 6.4 million euros to the state budget. Repto was originally confiscated by a local court. Although Janusienė confirmed the partnership with Kaiserex, she did not explain why the organizer deviated from the auction form.

Rajackas suggested that “[STI] consulted professionals in the industry, and it was clear that sales in large OTC offices would be more lucrative than auctioning. A comparison auction is a very bad choice because you can not know in advance when a good day to sell or decide a price or a decline will be. ”

Kaiserx has completed an OTC sale on a major cryptocurrency exchange. Rajackas said: “I can not say which OTC market we have used, but I can say that it is one of the five largest crypto exchanges in the world.” At the time of release, the top five cryptocurrencies on CoinMarketCap are Binance, Huobi Global, Coinbase Pro, Kraken and Bithumb.

Sales included approximately 337 Bitcoin (BTC), 360 Ether (ETH) and nearly 12,000 Monero (XMR). Each cryptocurrency was sold at the market price on the trading day: one BTC at € 15,100 ($ 17,900), one at € 400 ($ 480), and one XMR at € 99.6 ($ 119).

According to Rajakas, the beef market, where Bitcoin briefly crossed the $ 19,000 threshold, was one of the reasons why the sale was so profitable. “This allowed us to sell available cryptocurrency at record prices and get the most out of the euro,” Rajakas said, adding:

“I believe that if the government wants access to cryptocurrencies, this should be done by our Ministry of Finance, which plans and takes care of government assets. STI handles taxes and checks on confiscated assets, and they do not have speculative activity or hold anything as an investment. ”
Kaiserx is a cryptocurrency exchange that acts as a broker, connected to over 40 cryptocurrency exchanges and many OTC offices. Rajackas, which owns 100% of the company, says Kaiserx is not listed on large crypto sites such as CMC because it does not have internal order books and is dependent on other exchanges to obtain liquidity.

The company plans to continue working with Lithuanian institutions on similar cryptocurrency transactions and to support the Central Bank of Lithuania in its digital currency efforts.

Source: CoinTelegraph