The US Department of Justice plans to review the rules for returning encrypted assets, and current policies may prevent creditors from sharing in the appreciation of assets

Foresight News
Foresight News|Apr 17, 2025 12:11
According to Foresight News, a memorandum recently released by the US Department of Justice (DOJ) indicates that it will reassess the return methods for confiscated assets in cryptocurrency crimes, as the current rules for compensating in US dollars at the time of fraud have sparked controversy. Taking the FTX bankruptcy case as an example, the price of Bitcoin in November 2022 was $17500, but by January 2025 it had risen to $108000. Creditors were compensated at the 2022 price and were unable to share in the asset appreciation. DOJ acknowledges that current regulations aim to protect victims from the risk of asset depreciation, but also points out that compensating at current prices may lead to procedural unfairness and market timing issues. The memorandum does not specify a timeline for improvement, and may require Congress to revise regulations.
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