- Authorities in Ohio last week sold 500 seized bitcoin for $19.23 million, the largest net forfeiture in Northern District of Ohio’s history
- The bitcoin was seized from Mark Simon in 2018 and was sold to an unknown buyer
- The sale netted Ohio a profit of $14.73 million
The Department of Justice’s Northern District of Ohio discovered the power of HODL last week as it sold 500 seized bitcoin for $19.23 million. The haul, collected from convicted money laundered and identity fraudster Mark Simon in 2018, was held by authorities in Ohio state for three and a half years, during which time its value increased by $14.73 million.
Identity Thief Saw Gold, Silver, and Bitcoin Seized
Simon was arrested in early February 2018 having amassed the virtual fortune through the sale of fake identity documents. Customers would order driver’s licenses and personal identification cards through Simon’s website and pay in bitcoin, with authorities becoming aware of the scheme in 2015. A three-year investigation finally led to his arrest where police seized gold and silver coins and bars, cash, computer equipment, and the bitcoin.
Simon pleaded guilty and was previously sentenced to 24 months in prison for transferring false identification documents or authentication features and conspiracy to launder money. He agreed to the forfeiture of the bitcoin as part of the guilty plea, which dropped in value throughout 2018 but then reversed and increased hugely in value throughout 2020. The net return from the sale of the bitcoin was $19.23 million, which is the largest net forfeiture in Northern District of Ohio’s history.
Sale Method Not Revealed
The method of sale has not been released, nor has the identity of the owner. In forfeiture cases, the proceeds are shared between various federal agencies and local police departments that assisted with the case, and also as compensation for crime victims. Additional money is returned to the U.S. treasury.
